Claiming Interest on SA

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

    Claiming Interest on SA

    Hiya,

    I currently have a BTL on which I have no mortgage.
    I want to re-mortgage this property (Interest Only) and buy another BTL. I will also be taking out another BTL mortgage on the new property.
    My query is, on my SA can I claim back the Interest for both properties against my rental income?
    Any advice would be much appreciated.

    #2
    What is the purpose of the 2nd BTL mortgage?

    Comment


      #3
      if both properties have btl mortgages and are rented out, then yes. if this is a scam to rent one and live in the other then no!

      Comment


        #4
        Hi,

        Thanks for your reply. Just for clarification. I am trying to release capital in my first BTL (which is fully paid up) and use the money as a deposit to buy a second BTL.
        If I give you some example figures:
        1. First BTL - on this I take out a BTL mortgage for say £50,000 to release capital.
        2. I use the £50,000 as a deposit on a second BTL taking out another BTL mortgage on this second property for the balance.
        I know have two BTL mortgages, on the first and second properties.
        Both will remain as rental properties.

        Comment


          #5
          Both should be allowable.

          There is a limit to the mortgage interest that can be claimed on the existing property, which is limited to a mortgage on the original value when brought in to the business.
          If it cost £100k a few years ago and you mortgage it at £150k, only the first 2/3rds of the interest is allowable.
          When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
          Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

          Comment


            #6
            Originally posted by ssingh View Post
            Hi,

            Thanks for your reply. Just for clarification. I am trying to release capital in my first BTL (which is fully paid up) and use the money as a deposit to buy a second BTL.
            If I give you some example figures:
            1. First BTL - on this I take out a BTL mortgage for say £50,000 to release capital.
            2. I use the £50,000 as a deposit on a second BTL taking out another BTL mortgage on this second property for the balance.
            I know have two BTL mortgages, on the first and second properties.
            Both will remain as rental properties.
            Both should be deductible from the rental income.

            Comment

            Latest Activity

            Collapse

            • Capital Gains Tax dilemma
              by Ollyn
              Hello

              I am considering whether to sell my house which has been let for some time and need to see how I can best deal with CGT.

              I lived in the property from 1984 until 2006.

              From 2006 it has been occupied by tenants, now vacant and being renovated.

              ...
              18-05-2022, 18:17 PM
            • Reply to Capital Gains Tax dilemma
              by ash72
              You should seek advice from an accountant, or a property tax for tailored advice to your specific circumstances, you may be entitled to some relief if the property at any time was your own principal residence.
              18-05-2022, 21:14 PM
            • Reply to Capital Gains Tax dilemma
              by theartfullodger
              You declare (online) and pay CGT within 60 days of sale. Depending on the numbers I would expect you to pay CGT. What records do you have of applicable costs, etc?

              What you pay will depend on what CGT rules when you sell - v unlikely to be better than today, possibly worse. Covid,...
              18-05-2022, 18:29 PM
            • Reply to Tax Allowance on Rental Income.
              by Gordon999
              The property allowance is a tax exemption of up to £1,000 a year for individuals with income from land or property.

              If you own a property jointly with others, you’re each eligible for the £1,000 allowance against your share of the gross rental income.

              If your annual gross...
              18-05-2022, 16:47 PM
            • Tax Allowance on Rental Income.
              by banner257
              Can anyone help please, if a rental property is owned by two people 50 50. Would each owner be allowed to claim tax relief of £1000 each, or will the allowance of £1000 be split 50 50.
              Thanks
              18-05-2022, 08:42 AM
            • Reply to Tax Allowance on Rental Income.
              by jpkeates
              It's £1,000 each.

              Most landlords don't use this though, because it's rare for income from a rental property to be low enough to qualify,
              18-05-2022, 09:59 AM
            • Consent to Let - do we still need to pay tax
              by VIKKI99
              Hi, For kids school - we need to let out our Own House and move to a rental property close to school.
              The rental money I receive from my tenants is exactly same as rent I pay on my property where I am a tenant.
              Question : Rental money I receive from Tenants - should it be considered as income...
              18-05-2022, 01:07 AM
            • Reply to Consent to Let - do we still need to pay tax
              by Madmax86
              Rent is income. All income needs to be declared, regardless of the mortgage you have
              18-05-2022, 08:50 AM
            • Reply to Consent to Let - do we still need to pay tax
              by theartfullodger
              The clue is in the name. INCOME tax. Make sure you keep all relevant records, possibly say 30 years , for CGT which on current rules you will probably pay when eventually sold. But yes, self assessment income tax to be comply and paid, online. Do you have registration for government gateway?
              ...
              18-05-2022, 07:26 AM
            • Reply to Consent to Let - do we still need to pay tax
              by jpkeates
              Yes.
              It’s income....
              18-05-2022, 06:58 AM
            Working...
            X