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Interest Relief

Interest Relief

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Property has been let for number of years and there is a mortgage with interest paid. Decision is made to sell property at end of current 6 month lease.

Property takes three months to sell. Is there any tax relief for mortgage interest paid between termnination of lease and sale of property.

I am presuming that interest paid in the three month period after termination of lease cannot be sent against rental income as the property was not available for let - is this correct?

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Euan's picture
By Euan MacLennan
10th Nov 2014 15:09

Yes, unless ...

A property rental business starts when an owner first lets a property and ends when he stops letting any properties.  If he has another property, he might get away with it, but if this is his only property, the business ceases at the end of the letting and there is no income from which to deduct any further expenses.

And it will not just be interest.  As the property will be unoccupied, there will probably be Council Tax to pay.

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