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BTL MORTGAGE TO REDUCE TAX or NOT?

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  • noodle
    noodle Posts: 133 Forumite
    One thing you are forgetting while looking at all this:, yes, your mortgage interest is an allowable expense if you rent a property. And that reduces your tax bill. But you are forgetting that you also have to make those mortgage repayments back to the bank. You pay it out on one side and get it back on the other and they cancel each other out.

    They won't cancel each other out.. the interest paid will be higher than the tax saved.
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