Mark Alexander

Registered with Property118.com
Monday 17th January 2011

Specialisms
Declarations Of Trust


Latest Comments

Total Number of Property118 Comments: 11512

Mark Alexander

12:12 PM, 18th January 2022, About A week ago

Osbourne's private landlords mortgage interest trap, but?

Reply to the comment left by Laura Delow at 18/01/2022 - 12:01
You said ...

"My understanding is if you raise funds on your own home to buy a holiday let, you wouldn’t be able to deduct the mortgage interest when calculating your profits from the holiday let."

Your understanding is incorrect.

If the purpose of the loan is for investment into a business then the loan interest can be offset against that business. The ONLY exception to this rule is BUL, in which case you only get a 20% tax credit for the interest. It doesn't matter whether what the loan is secured against, it could even be an unsecured loan.... Read More

Mark Alexander

18:07 PM, 17th January 2022, About A week ago

Osbourne's private landlords mortgage interest trap, but?

Reply to the comment left by NewYorkie at 17/01/2022 - 17:11
I think you have misunderstood S24. Paying more interest does not increase your tax bill, it just doesn't reduce your tax bill as much as it would have done prior to Section 24.

Also, please see the two comments above, because I think you have a misunderstanding there.

I suspect you also shot yourself in the foot by leaving your former home unlet for two years and that some proper tax advice would have saved you many times over what the lack of it has ended up costing you.... Read More

Mark Alexander

16:59 PM, 17th January 2022, About A week ago

Osbourne's private landlords mortgage interest trap, but?

My only added proviso is to be certain the Furnished Holiday Let conditions are met for tax purposes, e.g available to let for a minimum of 210 days a year and actually let for a minimum of 105 days to include only let’s for 31 days or less.... Read More

Mark Alexander

14:43 PM, 17th January 2022, About A week ago

Osbourne's private landlords mortgage interest trap, but?

If the purpose of loan was made very clear I cannot see a problem with this.

A similar example would be borrowing against your own home to invest into BTL. You can still claim the 20% tax credit on that borrowing.

The key is transparency and making sure your accountant records it properly for you on your tax returns, because they will have to deal with any questions raised by HMRC in the event of a compliance check.... Read More

Mark Alexander

20:33 PM, 4th December 2021, About 2 months ago

Is it worth it after CGT?

Reply to the comment left by Olls63 at 04/12/2021 - 20:08
True but IHT isn’t, that requires planning... Read More