Remortgage to buy B2L Property: TAX issues

Bonus

Is it True?

Can i use savings in my home offset account and remortgage with equity my own home to purchase a B2L property...then claim the interest repayments as tax relief against the rental income earned ?????

I would love to find an official line on this one...would be an important factor in sorting out a very big messy situation i am now in :-)

ANY LINKS appreciated

pete80

Notes on page 8 regarding Box 24 mention that you can claim the interest on a loan or alternative finance arrangement as an expense.

http://www.hmrc.gov.uk/worksheets/sa105-notes.pdf

Also if you wish to have a look at Taxation Web forum, this question has been asked there before and one of the experts/tax accountants will be able to confirm this. A lot of BTL landlords use equity from their main property to help finance maybe a bigger deposit on their first investment property. Make sure you keep a paper trail or record of how and when the loan funds were transferred from your residential mortgage to the deposit on your BTL mortgage. HMRC may ask at a later date if they choose to examine your returns.

Do your sums first though and don't overstretch yourself (ie If interest rates increase by more than a few percent, you need to allow for this in your calculations)

Bonus

Pete80 you are a gem, exactly what i need thanks...Tax Forum here i come :-)