Capital Gains Tax & Interest only mortgages?

strettie3104

Hi Everyone,

Completing my self assessment due to capital gain made on a property and I'm fairly confident I've calculated everything OK, but looking at any extra costs I can factor in to minimise what I owe.

The property was not technically Buy to let (no rental income was made), but I did have an interest only mortgage... The question is can I deduct the mortgage payments as an incidental expense?

Cheers in advance.

pjclar02

Hello there

I'm afraid you cannot claim mortgage interest against a capital gain.

You can deduct costs of acquisition (stamp duty, legal fees etc), costs of disposal (agent fees, legal fees etc), capital improvements made, principal private residence relief for any period occupied etc.

strettie3104

pjclar02 wrote: »

Hello there

I'm afra id you cannot claim mortgage interest against a capital gain.

You can deduct costs of acquisition (stamp duty, legal fees etc), costs of disposal (agent fees, legal fees etc), capital improvements made, principal private residence relief for any period occupied etc.

Thanks for your reply.

I've read various bits and pieces about being able to claim mortgage interest, but they all related to buy to let situations.

I presume it means you can offset interest against the rental income, but not any gain through sale?

BoGoF

strettie3104 wrote: »

Thanks for your reply.

I've read various bits and pieces about being able to claim mortgage interest, but they all related to buy to let situations.

I presume it means you can offset interest against the rental income, but not any gain through sale?

You presume correctly.

CLAPTON

full facts sometime help

maybe give for complete information