Hello hivemind - hoping for some help please
My client 'Anon' has received very little income during the year - circa £3k, including a rental income profit of approx £2.4k
Their mortgage interest costs are approx £1.6k for the year.
Am I able to carry the mortgage interest costs forward in full, as their income is well below the personal allowance, so will not benefit from a tax deduction?
I've tried looking on the gov. website but it doesn't clarify anything for me.
Replies (11)
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The legislation is referred to here:
https://www.gov.uk/hmrc-internal-manuals/property-income-manual/pim2058
Not sure if it answers your question.
EDIT: What does the client live off - and how did they get a mortgage?!
EDIT: What does the client live off - and how did they get a mortgage?!
Does this affect the allowability of interest ?
Does this affect the allowability of interest ?
I'm an accountant with an inquiring mind. You don't have to spend too much time reading Q&As on here to know that a bit of digging sometimes brings out pertinent facts not in the original question. That's especially true, for some reason, with property lettings where we've seen all manner of "interesting" proposed tax treatments. If the OP doesn't wish to respond, that's her choice.
Look at example 4 in this HMRC blurb
https://www.gov.uk/guidance/changes-to-tax-relief-for-residential-landlo...
Gleaned from Google by typing "mortgage interest relief residential rental" into the search box.
And OP is 'Anonymous' ... why? Can't see anything sensitive in post ... unless it's the figures (in which case would have been more appropriate simply to change those to suitable 'example values' as most people do)?
And OP is 'Anonymous' ... why?
Pretty sure it wasn’t posted as anonymous so baffled why it was changed.
I'm confused. If mortgage interest relief is a tax reducer and presumably there's no tax to pay on such little income, where else would it go but carry forward?