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Residential mortgage allowable deduction?

Didn't find your answer?

We only have one mortgage - a residential mortgage.  Our circumstances changed (due to work) and we moved into a rental property.  Are we able to deduct the mortgage interest element from our rental income?  I am aware of the new restrictions but my concern is that we cannot deduct any of it as it is considered a personal loan not a business loan?

If not allowable, this will have a big affect on the tax we need to pay.  Thank you for your help!

 

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By Richard Grant
19th Oct 2019 19:52

This the problem with buy to let at the moment. Look at this link to see what you can offset.
https://www.gov.uk/government/news/changes-to-tax-relief-for-residential...

The other issue you may well have is that if your mortgage provider finds out you are renting the property out they may well change your interest rate.

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By Accountant A
19th Oct 2019 20:58

And did I mention CGT??

Yes, what you need is an accountant. Or you can DIY and pay more tax than you need to. Your choice.

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panda ketteringUK
By ketteringUK
20th Oct 2019 11:15

Have you tried the HMRC helpline? They are pretty good at giving FREE tax advice.
This is a forum for accountants and alike, and not for general public trying to save few bucks!

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Replying to ketteringUK:
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By Lucy123l
20th Oct 2019 11:54

Very judgemental and arrogant. You clearly have too much time on your hands to bother writing that.

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Replying to Lucy123l:
panda ketteringUK
By ketteringUK
21st Oct 2019 18:45

bang! your anonymity is gone...

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Replying to Lucy123l:
panda ketteringUK
By ketteringUK
21st Oct 2019 18:45

bang! your anonymity is gone...

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By JDBENJAMIN
21st Oct 2019 11:00

My advice is.......drum roll.....GET AN ACCOUNTANT AND DO WHAT HE SAYS. You are one of the constant stream of people on this forum fishing for free advice. Even if we wanted to, we could not advise correctly as we don't know your full circumstances.

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