Tax deductible mortgage deposit?

by Readers Question

4 years ago

Tax deductible mortgage deposit?

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Tax deductible mortgage deposit?

Having recently acquired a property with a 75% Loan to Value mortgage, I had to pull down from the mortgage on my main residence to make up the other 25%.

My question is can I deduct the interest only element of the 25% for tax purposes as well as on the 75% mortgage? Tax deductible mortgage deposit

Thanks

Brian



Comments

Mark Alexander

4 years ago

Hi Brian

Yes the good news is that you can offset the interest paid against rental profits on the 75% mortgage and also on the mortgage used to raise the deposit.

I do recommend that you take professional tax advice though as this often saves you more money and strife in the long run than the advice costs - see >>> http://www.property118.com/member/?id=452
.

Jason Holden

4 years ago

Hi Brian

If you have taken a mortgage on your home for the deposit on the rental you should be able to claim tax relief on the interest relating to the part of the mortgage you have invested in the BTL.

I say 'should' as without knowing your circumstances it would not be prudent to give a definite yes.

What i can say with certainty is that maybe you should consider engaging the services of an accountant to advise and support you especially if you are going to grow your portfolio.

Good luck,

Jason


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