The issue of tax relief on a second residence sparked a lively discussion on Any Answers after AccountingWEB member Cariad71 put forward a complicated scenario.
Tax expert Tim Good highlighted the example at a Tolley CPD lecture in Bristol this week, concluding that in this situation we must consider whether interest is incurred wholly and exclusively for the purpose of the letting business.
Following a look at the Green v HMRC case, where the FTT found there was no tax relief on bank overdraft interest, Good referred to the AA post and backed John Perry and George Attazder who contradicted the prevailing AccountingWEB members’ view on mortgage interest relief.
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