buying into partnership using remortgage

megadishu

I upped my mortgage using the money to buy into a partnership where we developed a property. I understand that I can offset this money when filling in my own self assessment tax form. We are doing the partnership tax return, and then each doing our own self assessment and the supplementary pages for the partnership for own self assessment.

Finding this all a bit complicated but where do I state the amount - do I state the total amount for the period - I put the mortgage onto interest only whilst I borrowed the money and then it was repaid ...

Help and thank you.

fengirl_2

You just include the interest paid on the mortgage.

susie81

You can only claim the interest relating to the amount you invested in the partnership.

So, if you had interest in the year of £10,000 on a total mortgage of £140,000 (figures not necessarily realistic) and you invested £40,000 of the mortgage into the partnership, you could have relief for £2,857 of the interest (£10,000 x 40,000/140000).

As you mentioned it was a property partnership, I presume since you're completing a partnership return it is deemed to be a trade. Therefore you can have the relief against your total income. If it was income from property held jointly it would be allowable against the property income only.

I also have to include a disclaimer that I work in tax but you should always check the advice with your own accountant or tax adviser.

Also, it should go on page 2 of the additional information pages under other tax reliefs box 5, as qualifying loan interest