Parents want to Buy to Let

luckyfool

Makes more sense that way to be honest, better rates etc. They should check with their accountant, but as long as they specifically allocate the borrowed money towards buying the 2nd property as a buy to let, they should be able to allocate interest on that debt against any rental income for tax purposes. Bear in mind they might have a potential Capital Gains Tax liability on the 2nd property whenever it is eventually sold based on any increase in value over the 5 yr period before it becomes their main residence (assuming there is a gain that is).

Luckyfool

Bromley86

(assuming there is a gain that is)

There better be - I'll likely need to move myself within 5 years and I'd like the market to have picked up by then .

Thanks for the allocation vs. rental income point. Dad's up to speed on CGT, but he might not have thought of that.