Tax benefits from mortgage ?

sinizterguy

Are there any tax benefits from having a mortgage ? Such a deductible part of the income which wont be taxed if you are paying for a mortgage ?

Initial googling seems to indicate there is not, but I am sure someone mentioned something of the sort to me a few months ago.

brazilianwax

Part of the interest is tax-deductable on a buy to let property (in some circumstances) but not residential mortgages.

MarkyMarkD

Or, in fact, "some or all of the interest, in most circumstances".

brazilianwax

MarkyMarkD wrote: »

Or, in fact, "some or all of the interest, in most circumstances".

Thanks - been a while since I looked into it.

I didn't do it because the CGT implicstions were massive (they'll get the tax off you somehow!)

cattie

The days of tax relief on residential mortgages are long gone sadly. I think it was abolished around 8 or 9 years ago now

nick1977

It seems there is nothing that can help us poor people just making our first step onto the property ladder.
My wife and I earn about £40k between us per year, and have an £800 pcm mortgage on a 1 bed maisonette. We are wanting to start a family but dare not until we can afford the next step up the ladder. A typical 3 bed semi in this area goes for about £280k and our place is now worth est £165k with £125k remaining to pay.
I personally think it stinks that the only way we can get any kind of tax relief to help us make the next step is to have kids now, and then show we can't afford a home with more than 1 bedroom and get council housing.
Tax relief on mortgage, married couples allowance - all gone.

Sorry for sounding off, but I have recently become more and more pi**ed off at the fact that the Government doesn't seem to want to help anyone who wants to do things the "traditional" way. i.e. Get married, get a family home, and have kids!

Nick

brazilianwax

nick1977 wrote: »

Sorry for sounding off, but I have recently become more and more pi**ed off at the fact that the Government doesn't seem to want to help anyone who wants to do things the "traditional" way. i.e. Get married, get a family home, and have kids!

Nick

There's even less for us DINKIES - unless you have kids there are no breaks at all!

nick1977

brazilianwax wrote: »

There's even less for us DINKIES - unless you have kids there are no breaks at all!

Less than we will get in the future when we have kids, I assume you mean.
At the moment we get no tax allowances at all, so techincally it's impossible for you to have less than that

(I suppose you could count the tax relief on my ISA savings if you want!)

Nick

nick1977

Maybe a stupid question, but what are DINKIES anyway?

Nick

brazilianwax

nick1977 wrote: »

Maybe a stupid question, but what are DINKIES anyway?

Nick

Double Income No Kids ies

brazilianwax

nick1977 wrote: »

Less than we will get in the future when we have kids, I assume you mean.
At the moment we get no tax allowances at all, so techincally it's impossible for you to have less than that

(I suppose you could count the tax relief on my ISA savings if you want!)

Nick

Believe me, we take advantage of all the breaks we can (will see how long it takes Gordon Brown to tighten up the dividend loophole) but if we never have kids (and it's a real likelyhood) then we won't see any breaks.

On one level I don't mind, but sometimes it bugs me!