Documentation/Evidence for deductible interest

by Readers Question

1:28 PM, 18th February 2015, 11 years ago 6

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Landlord News Landlords Questions

I understand the loan drawn from your principal home that is then used to finance 25% of the But to let Property (of which the remainder is funded by a BtL Loan 75%) is tax deductible. However, this loan amount is wrapped together with my other principal home mortgage. The interest calculated is based on % basis and I wondered if this is sufficient enough evidence for the HMRC?

Thanks

James L

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Mark Alexander - Founder of Property118 Read Full Bio

Member Since January 2011 - Comments: 12196 - Articles: 1396

1:31 PM, 18th February 2015, About 11 years ago

Hi James

If you are able to provide an audit trail in terms of statements that should be fine.

If in doubt, use an accountant. You may well be pleasantly surprised at how much a good one can save you, over and above what they cost you.

Here’s a link to the member profile of chap I use >>> https://www.property118.com/member/?id=452
.

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CaZ

Member Since September 2013 - Comments: 154 - Articles: 1

11:02 AM, 19th February 2015, About 11 years ago

Obfuscated Data

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Kevin Perry Go Large

Member Since February 2015 - Comments: 3

11:40 AM, 19th February 2015, About 11 years ago

I agree, I’ve just saved an incredible amount using a company Mark suggested to me many months ago, speak to Neil Barlow at Pacific via this contact form https://www.property118.com/member/?id=452

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Sue J

Member Since October 2014 - Comments: 8

12:13 PM, 19th February 2015, About 11 years ago

Hi James,

I have also used funds from my principal home for my btl properties. As Mark advises provided that you can show an audit trail of how much money was used then this can be the basis for the calculation of interest. I have always used an accountant as it saves me time and money and his advice is what I pay for when I’m considering any projects or financing of properties.

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James L

Member Since February 2015 - Comments: 1

5:34 PM, 19th February 2015, About 11 years ago

Thank you all for your response. Clearly accountants are imperative on this note and will consider them in the near future. Many thanks…

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Mark Alexander - Founder of Property118 Read Full Bio

Member Since January 2011 - Comments: 12196 - Articles: 1396

5:57 PM, 19th February 2015, About 11 years ago

Reply to the comment left by “perry newton” at “19/02/2015 – 11:40“:

That’s great to hear Perry, how’s the weather in Malta?

Note to all, if you are visiting Malta check out the Raddison Blu hotel, Perry is a Director there and hired me last year to present the benefits of UK property investment to his team.

They are a superb bunch and you will not find a better hotel in Malta.
.

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