Client has a rental portfolio of 8 properties = no problem.
Last year they rented out their own property (of which there is no mortgage) as an Air BnB, it was only for 90 days therefore would never qualfy as FHL, they were never present at the time people came to stay (they stayed round the corner at parents) therefore rent a room relief is out of the question.
Mortgage Interest Relief is restricted if the property profit is lower than the finance cost. (lets say the aforementioned 8 rental properties Finance costs = £20k and Property Profit = £15k)
My question is this, HMRC state Air BnB is rental income, can the Air BnB profit (£5k) therefore be used to increase property profit to gain access to more Mortgage Interest Relief on the other Rental Properties?
It just seems a bit wrong but I can find a scenario / example from HMRC that tells me I can't.
Should it be treated as a "separate" Rental Income to the others?