HMRC confusion – Is BTL a commercial mortgage?
8:01 AM, 5th January 2018, 8 years ago
13
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I have just been on the HMRC webinar for Income from property and they have said that commercial mortgages will be exempt from interest relief changes that are getting phased in from 2017-2018 tax year.
Is a BTL mortgage classed as a commercial mortgage? as I was under the impression that they are not regulated under the FCA.
I asked the question in the chat box and was told to refer to my lender.
Many thanks
Mark
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Member Since July 2017 - Comments: 60
11:35 AM, 6th January 2018, About 8 years ago
Reply to the comment left by Gunga Din at 06/01/2018 – 10:16
the loan can be against the freehold off the building . claim the relief against the commercial ,
Member Since November 2015 - Comments: 584
2:57 PM, 8th January 2018, About 8 years ago
Reply to the comment left by Gunga Din at 06/01/2018 – 10:16
Hi Gunga Din, according to the HMRC website PIM2106 the interest must be fairly apportioned between the residential and commercial element. Whether that is by using the floor area, or the valuation proportions is not specified, but your accountant should use the most logical method dependent on your individual property circumstances. You should be able to justify the method used.
Member Since September 2015 - Comments: 222
5:42 PM, 8th January 2018, About 8 years ago
Thanks very much Kate Mellor for that encouraging reply. I’ll ensure the accountant sees it the same way!