Documentation/Evidence for deductible interest

by Readers Question

13:28 PM, 18th February 2015
About 4 years ago

Documentation/Evidence for deductible interest

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Documentation/Evidence for deductible interest

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? Documentation Evidence for deductible interest

Thanks

James L



Comments

Mark Alexander

13:31 PM, 18th February 2015
About 4 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 >>> http://www.property118.com/member/?id=452
.

Carol Thomas

11:02 AM, 19th February 2015
About 4 years ago

I cannot tell you how important a good accountant is to you. I was able to do my returns myself when I had only one property, but after buying five more I rang my accountant for help. He has saved me hundreds if not thousand of pounds and my tax bill has been nil to negligible. Add to that a great letting agent who doesn't overcharge and does a really good job and I am able to relax and enjoy the fruits of my labour.
As usual Mark is giving you excellent advice that would pay you to follow. Good luck with it all.

Perry Newton

11:40 AM, 19th February 2015
About 4 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 http://www.property118.com/member/?id=452

Sue J

12:13 PM, 19th February 2015
About 4 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.

James L

17:34 PM, 19th February 2015
About 4 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...

Mark Alexander

17:57 PM, 19th February 2015
About 4 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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