by Chris Unwin
12:13 PM, 24th April 2014, About 8 years ago 11
I have a property which once upon a time had a mortgage on it and the property was let. I used to claim the mortgage interest as an allowable expense each year and everything was hunky dory.
Then it came to pass that I paid off the mortgage and could no longer claim any interest against tax. Later on I took a loan of 150K for 50% of its value (300K) on the property. The original purchase loan was 60K My understanding at that time was that only the original purchase loan interest could be used as an expense. Then the seed of doubt was sown in my mind as I noticed an article on this website that indicated that interest on a new loan could be offset against Tax. Is that in fact correct??
If so, does it matter what was done with the loan? About 70K was used as a deposit for another BTL property and the rest was used for non BTL purposes. My inkling is that only the 60K used for the BTL will be tax deductible.
Would welcome any learned views
Please Log-In OR Become a member to reply to comments or subscribe to new comment notifications.
Advice and implementation provided by a practising Barrister-At-Law with £10,000,000 of Professional Indemnity InsuranceBook Now
Previous ArticleThe Mortgage Works Won't give me a redemption figure - Please help!
Next ArticleFixtures and Fittings - it's all in the detail
|“Account”||means an account required to access and/or use certain areas and features of Our Site;|
|“Cookie”||means a small text file placed on your computer or device by Our Site when you visit certain parts of Our Site and/or when you use certain features of Our Site. Details of the Cookies used by Our Site are set out in section 13, below;|
|“Cookie Law”||means the relevant parts of the Privacy and Electronic Communications (EC Directive) Regulations 2003;|
|“personal data”||means any and all data that relates to an identifiable person who can be directly or indirectly identified from that data. In this case, it means personal data that you give to Us via Our Site. This definition shall, where applicable, incorporate the definitions provided in the EU Regulation 2016/679 – the General Data Protection Regulation (“GDPR”); and|
|“We/Us/Our”||Means Property118 Ltd , a limited company registered in England under company number 10295964, whose registered address is 1st Floor, Woburn House, 84 St Benedicts Street, Norwich, NR2 4AB.|
|Name of Cookie||Purpose||Strictly Necessary|
|JSESSIONID||Used only to collect performance data, with any identifiable data obfuscated||No|
|__cfduid||This cookie is strictly necessary for Cloudflare's security features and cannot be turned off.||Yes|
|Name of Cookie||First / Third Party||Provider||Purpose|
|__utma, __utmb, __utmc, __utmt, __utmz||First||Helps to understand how their visitors engage with our website|
|_fbp||First||Helps to understand how their visitors engage with our website|