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Mortgage Interest from personal property

Can it be unevenly split between spouses?

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A married couple have a mortgage on their home in joint names.

 

They have property portfolios of 3 buy-to-lets owned jointly & 5 owned solely by the husband.

 

We are looking to introduce the mortgage (& therefore interest) from their home into the lettings businesses.  However, can the mortgage on their home be introduced solely by the husband, and the interest offset against his 5 properties, or does it have to be introduced on a 50:50 split?

 

The husband could introduce the full mortgage across his portfolio without it making his capital account overdrawn, whereas the wife would not be able to fully utilise her 50% share.

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15th Sep 2017 09:55

How are you intending to introduce a mortgage that is nothing to do with the lettings business into the lettings business at all?

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15th Sep 2017 10:24

Why introduce the mortgage interest from their home into the business when they're not entitled to tax relief on it?

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15th Sep 2017 10:27

I just re-read your question, it seems you don't realise this is most definitely not allowed. Is this something you routinely do for all your property clients?

edit: oh, I just realised you're more likely the husband and you have not consulted an accountant, hence the ridiculous question.

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to Duggimon
15th Sep 2017 10:49

The OP may be the husband, but clearly is also acting as an accountant based on other posts.

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to Kevkava
15th Sep 2017 11:14

Frightening

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to Duggimon
15th Sep 2017 11:47

Agreed

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15th Sep 2017 12:44

I am going to have to disagree with the previous posters and ask the question they have all failed to ask:

What is the purpose of the loan?

As to the capital introduction split I think that needs a little more thought at the moment.

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to Kim Jong Un's Hair
15th Sep 2017 13:01

Whilst I accept your point, the previous posters are making a not unreasonable assumption from the phrasing.

They HAVE a mortgage on their own house. The husband HAS a property portfolio. These are both past events, yet they are looking at "introducing" the mortgage as a current event.

It therefore seems not unreasonable to assume that the mortgage on their own house was the one used to buy that house. It further seems not unreasonable to assume that the loan has not historically been used for the lettings business. If a joint loan had been so used, it would be odd for the property portfolio to be solely in the husband's name.

If that is not the case, it is up to the OP to say so. Indeed my first reply, whilst clearly making this assumption, gave the OP opportunity to explain any connection.

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to Kim Jong Un's Hair
15th Sep 2017 16:19
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to Justin Bryant
15th Sep 2017 14:08

Oh, we've had a visit from the link monkey.

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to Portia Nina Levin
15th Sep 2017 14:33

Portia Nina Levin wrote:

Oh, we've had a visit from the link monkey.

I've criticised Justin myself for just dropping in links in the past.

But this time the links appear both relevant and readable. Academic if, as most of us have assumed, the mortgage is an existing one that has not been used for the lettings business. Actually pretty helpful if it is a new mortgage or mortgage extension that is going to be used to finance the lettings.

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to stepurhan
15th Sep 2017 16:12

The loans can finance cash capital withdrawal and be tax deductible, which is obviously what the question is meant to be about.

In case not obvious, the links are for my benefit, as this website acts as an effective useful storage of information (assuming you know how to search it properly).

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