Main home mortgage interest deducible against commercial investment income?

  • Filter
  • Time
  • Show
Clear All
new posts

    Main home mortgage interest deducible against commercial investment income?

    Hi all,
    If I own my main residence outright and obtain a mortgage on it to finance a commercial investment property is the mortgage interest an allowable cost against the commercial rental income?



    If the draw down of the mortgage loan is on the same date as the purchase date of the commercial property, the mortgage interest should be allowed as expenses against rental income.. But you should check with your accountant before you proceed.


    Latest Activity


    • Will I pay stamp duty?
      So i was hoping for some good advice.

      Me and my girlfriend are looking to buy a house together, the problem is i already have a house of my own which i am renting out on a BTL mortgage. So if i buy a house with my girlfriend that will be my second home, but her only home.

      18-05-2019, 16:02 PM
    • Reply to Will I pay stamp duty?
      There are a minority of lenders who will accept one person being on the Title but with two persons on the mortgage in order support the affordability , otherwise You cannot circumvent the SDLT premium in the second property is in joint names.
      18-05-2019, 21:34 PM
    • Tax implications of extending a lease at no cost
      Hi there

      i am one of four directors of a company that owns the freehold of the four flats in our house.

      one of the owners is selling and wants to extend the lease as its dropped to 67 years. I realise now we should have done 999 leases as soon as we bought the freehold but...
      14-05-2019, 10:12 AM
    • Reply to Tax implications of extending a lease at no cost
      Thanks - it would be our preference to renew them all at the same but unfortunately the seller is pushing us as their buyer is threatening to pull out.

      We now have differing advice over whether we will be liable to pay tax on the assumed financial benefit of the extended lease at no cost....
      17-05-2019, 16:27 PM
    • Capital gains tax and tax credits
      hi i have recently sold a rental property and have been working out my tax liability for the GCT which works out at 2,500 tax to pay and im a non tax payer and this just takes me over the threshold - ok for tax credits pruposed do i need to declare the captial gain as its a capital gain and not income...
      17-05-2019, 14:29 PM
    • Reply to Capital gains tax and tax credits
      update - ive been onto the tax credits for the past hour and they are saying not to inclue unless im re-investing or making money from the capital gains
      17-05-2019, 16:16 PM
    • Is this legal?
      Hi all, I am completely new to this so wanted to get some informal advice. I currently jointly own a freehold property in London (with my sister that lives in the US) that I inherited from my mother many years ago. I do not live in the house, not does my sister; until now, the entire property was let...
      15-05-2019, 22:04 PM
    • Reply to Is this legal?
      It's permitted, but is obviously designed to evade tax. You need to declare the income you receive from your son - and pay tax on it. What is he going to pay over to you - the full rent or more than he has actually received? For £1500 this is a lot of complications and your son becomes a landlord with...
      17-05-2019, 09:56 AM
    • Reply to Is this legal?
      Your son is basically renting the property from you, so he can deduct the rent he pays you from his income, so you don’t end up paying tax twice.
      17-05-2019, 07:21 AM
    • Reply to Tax implications of extending a lease at no cost
      If the freehold title is owned by external party, then the external "freeholder" would charge each leaseholder for lease extension.

      If the freehold company is owned by the 4 leaseholders, the members of the freehold company can agree to extend all flats together to 999...
      17-05-2019, 05:49 AM