Buy to let landlords and tax relief on loan interest

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    Buy to let landlords and tax relief on loan interest

    Buy to let landlords and tax relief on loan interest

    Source: Macfarlanes LLP - Investors in buy to let property may be able to claim additional tax relief on mortgage interest following a change in HMRC's interpretation of the rules for deductible business expenses in relation to rental income. Investors who remortgage and take out a larger loan should in the future be able to claim tax relief on the additional interest.

    buy to let rates and buy to let mortgages news
    I am a Fees Free whole market Mortgage adviser, but I accept no legal responsibility for the information I post, except if you request advice privately and Initial Disclosure Document is issued

    #2
    Limited by the value of the property when 'First Let' Equity raised outwith that value can not be claimed against that property. Landlords of multiple properties should be aware that the limit is the total value of the properties when first led as the 'business' is treated as a whole. Regards Peter

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      #3
      This news is about 5 years old...

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      • Rent-a-room and tax deductions
        doobrey
        Trying to settle a debate :-

        I am aware that claiming rent-a-room relief precludes the deduction of expenses for that property such as utilities, GSC, etc.

        However, my accountant has stated that I cannot deduct an amount for use of my own property for business purposes, since...
        17-10-2019, 11:57 AM
      • Reply to Rent-a-room and tax deductions
        doobrey
        Thanks. That is what I thought....
        17-10-2019, 13:23 PM
      • Reply to Rent-a-room and tax deductions
        jpkeates
        No, I believe you would be able to claim an allowance of £4 a week against the income from that business....
        17-10-2019, 13:18 PM
      • Reply to Rent-a-room and tax deductions
        Gordon999
        The Rent a Room Scheme lets you earn up to a threshold of £7,500 per year tax-free from letting out furnished accommodation in your home. This is halved if you share the income with your partner or someone else. You can let out as much of your home as you want.

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        17-10-2019, 13:04 PM
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        doobrey
        I am not suggesting that Rent-a-Room is a business (...and that is, I guess, part of the point of my question).

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        17-10-2019, 12:48 PM
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        Kots
        Hi all,

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        15-10-2019, 05:10 AM
      • Reply to Maintenance payment flow of funds
        Gordon999
        For your BTL letting business , you are required to keep proper records of the rental income and expenses for each year and be able to report the figures in your annual income tax return.

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        17-10-2019, 12:46 PM
      • Reply to Rent-a-room and tax deductions
        jpkeates
        The point of the Rent a Room scheme is that the landlord isn't running a business, it's a non-commercial arrangement.
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        17-10-2019, 12:40 PM
      • Reply to Maintenance payment flow of funds
        Kots
        Thanks for your replies.

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        leaseholder64
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