New electrical checks and safety standards for Landlords8:59 AM, 15th January 2020
About 2 weeks ago 169
I’m looking for some clarity on taking equity out of a BTL Property, and whether the interest on the loans is tax deductible.
If I have a property with little or no mortgage and I’m in the process of re-mortgage it, taking say £50,000. Can I use this cash to buy a fast car and some holidays, wine, women and song, etc, and is it subsequently tax deductable from the rental income?
What if I’d put £50k cash into the property previously and this was just ‘paying me back’ ?
Or do I need to use any cash drawn from the property for further BTL investment for it to be tax deductible?
Question two – if I used the remortgage proceeds to buy another BTL property, is the interest deductible from the original BTL income, or the next one, or just all thrown it into one big pot of incomes and deductibles ?
If the £50k is only deductible when used for another BTL, then when would it come into play, since I’ve been advised any renovations/decoration of a ‘new’ (to me) property is only deductible against rent after it has already been let, and not to do it up ready for letting for the first time ?
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