We'd like to remind Forumites to please avoid political debate on the Forum... Read More »
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
JUST MARRIED...Tax Deductible Mortgage
Pimpslider
Posts: 192 Forumite
in Cutting tax
Hello...longtime reader, short time poster here...
I'm after a bit of advice regarding deductibles for renting a property. This is the scenario...
I mortgaged my 'mortgage free' home to buy my girlfriends property a couple of years ago. We have been renting it out since with no problems (we did this as long term investment for the kids). As my house is in my name, the 'interest only' mortgage I took out was also in my name, and so not tax deductible on the rented property, as that property is in my girlfriends name.
But...two weeks ago we got married. I have read the following about deductibles when renting...
"Loans in Joint Names: Strictly, for interest to be claimed as a business expense, it must be a liability of the owner of the business (my Wife in this case). This generally means that the underlying loan must be in the name of the property investor themselves.
By concession, however, Revenue & Customs will allow qualifying interest paid by a property investor to still be claimed when the underlying loan is 1) In joint names with their spouse, or 2) In the sole name of their spouse.
Under scenario 2), it is vital that the interest is actually 'paid' by the property investor themselves, even though it is their spouse's liability".
Now, the 'rent' and 'interest only mortgage payments' have always been in and out of our joint account (the difference being about £80 in our favour). My girlfriend (whoops, I mean Wife) is a self-employed hairdresser and so does her own taxes. So...now we are married, are the mortgage payments tax deductible? My view is that they would be now that we are married.
Any know where I can find confirmation of this, or is there a similar thread?
Many thanks...
Pimpslider.
I'm after a bit of advice regarding deductibles for renting a property. This is the scenario...
I mortgaged my 'mortgage free' home to buy my girlfriends property a couple of years ago. We have been renting it out since with no problems (we did this as long term investment for the kids). As my house is in my name, the 'interest only' mortgage I took out was also in my name, and so not tax deductible on the rented property, as that property is in my girlfriends name.
But...two weeks ago we got married. I have read the following about deductibles when renting...
"Loans in Joint Names: Strictly, for interest to be claimed as a business expense, it must be a liability of the owner of the business (my Wife in this case). This generally means that the underlying loan must be in the name of the property investor themselves.
By concession, however, Revenue & Customs will allow qualifying interest paid by a property investor to still be claimed when the underlying loan is 1) In joint names with their spouse, or 2) In the sole name of their spouse.
Under scenario 2), it is vital that the interest is actually 'paid' by the property investor themselves, even though it is their spouse's liability".
Now, the 'rent' and 'interest only mortgage payments' have always been in and out of our joint account (the difference being about £80 in our favour). My girlfriend (whoops, I mean Wife) is a self-employed hairdresser and so does her own taxes. So...now we are married, are the mortgage payments tax deductible? My view is that they would be now that we are married.
Any know where I can find confirmation of this, or is there a similar thread?
Many thanks...
Pimpslider.
I'M NOT AS THINK AS YOU DUMB I AM...
Like Gary the No-Trash Cougar says: "Give a larbage, throw out your garbage!" Spread the word!
Like Gary the No-Trash Cougar says: "Give a larbage, throw out your garbage!" Spread the word!
0
Comments
-
Could you clarify which property the mortgage is on? Only it read like it is on the house you live in not the house you rent out, but not sure if I am just reading wrong.0
-
Yes, the mortgage is an 'interest only' on my property.
The money was then used to buy my 'wifes' property.I'M NOT AS THINK AS YOU DUMB I AM...
Like Gary the No-Trash Cougar says: "Give a larbage, throw out your garbage!" Spread the word!0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 351.3K Banking & Borrowing
- 253.2K Reduce Debt & Boost Income
- 453.7K Spending & Discounts
- 244.2K Work, Benefits & Business
- 599.4K Mortgages, Homes & Bills
- 177.1K Life & Family
- 257.7K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.2K Discuss & Feedback
- 37.6K Read-Only Boards