Tax and BTL question
Discussion
Earlier in the year I bought a BTL flat for £100k, I used savings of £25k and as I had no mortgage on my current property I remortgage it to fund the remaining in order to get the best rates.
I've been told that the interest on the mortgage is deductible from the rental income for tax purposes as the loan was to fund the investment.
My question is that now the winter blues are kicking in, thoughts of new cars are on my mind, I was looking at borrowing circa £10k. Could I also offset the interest on this loan against the tax on the mortgage effectively taking £10k of my initial investment back out of the flat.
I've been told that the interest on the mortgage is deductible from the rental income for tax purposes as the loan was to fund the investment.
My question is that now the winter blues are kicking in, thoughts of new cars are on my mind, I was looking at borrowing circa £10k. Could I also offset the interest on this loan against the tax on the mortgage effectively taking £10k of my initial investment back out of the flat.
andye30m3 said:
Earlier in the year I bought a BTL flat for £100k, I used savings of £25k and as I had no mortgage on my current property I remortgage it to fund the remaining in order to get the best rates.
I've been told that the interest on the mortgage is deductible from the rental income for tax purposes as the loan was to fund the investment.
My question is that now the winter blues are kicking in, thoughts of new cars are on my mind, I was looking at borrowing circa £10k. Could I also offset the interest on this loan against the tax on the mortgage effectively taking £10k of my initial investment back out of the flat.
No.I've been told that the interest on the mortgage is deductible from the rental income for tax purposes as the loan was to fund the investment.
My question is that now the winter blues are kicking in, thoughts of new cars are on my mind, I was looking at borrowing circa £10k. Could I also offset the interest on this loan against the tax on the mortgage effectively taking £10k of my initial investment back out of the flat.
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