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Buy to let mortgage and taxation
Merrylegs
Posts: 8 Forumite
I have a flat which I used to live in but is now rented. I took out equity for our new residential home. Does anyone know if the taxman needs any particulars? I declare mortgage interest and rent etc. but accountant says I must declare original purchase price and any re-mortgage above that figure is offset against mortgage interest. Can anyone help?
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Yes your accountant will help u as they are correct0
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No point paying for an accountant if you dont intend to take their advice.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0
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Thank you - do you happen to know if it's the original purchase price of the value of the property when I moved?0
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Sure - point taken - but I bought my first flat for 75K and when I left it was valued at something like 185K. I could have sold the flat and re-invested elsewhere without the same implications. I'm not sure if accountant is 100% accurate on this one!No point paying for an accountant if you dont intend to take their advice.0 -
You need an accountant experienced in letting; or one that is prepared to investigate.
The basic rule is that the mortgage interest payments on money borrowed, upto the value of the property when first let, is an allowable expense against rental income.
If you want information from this forum (other than see an accountant:rolleyes:) you are better off posting on the tax board.I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.0
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