Can I claim tax relief on an interest only mortgage?

Bodie444

Help!
Filling out my self assessment and am tying myself in knots............where it asks "loan interest and other financial costs" can I put my interest only mortgage in there? I haven't received a tax statement from the lender so have no idea how much it would be.

Thank you for your help.
Bodie

POPPYOSCAR

Bodie444 wrote: »

Help!
Filling out my self assessment and am tying myself in knots............where it asks "loan interest and other financial costs" can I put my interest only mortgage in there? I haven't received a tax statement from the lender so have no idea how much it would be.

Thank you for your help.
Bodie

Only if you are self-employed and use part of your home for business use.

You cannot claim it all

You really need expert advice as it has been explained by our accountant, if you claim for a large proportion of your home you may be subject to tax when you sell it.

You can claim it all on a property that you own but rent out.

Bodie444

Thank you for your help, PoppyOscar

Sorry, didn't make myself clear - it's a buy to let mortgage and I've just spoken to the mortgage lender who said I could claim. I didn't realise this and haven't put it in for last years' self assessment from 2010-2011. Can I do this retrospecitvely somehow as I did have to pay last year. I'm employed.

Bodie444

that is, pay extra tax last year, £164. Better in my pocket than the governments!

nomunnofun

You can amend last years tax return by simply choosing that option on the online system You have until Thursday to do this.

POPPYOSCAR

You will also have to declare the profit made from the rent. Do not forget you can claim other related expenses, not just the interest to offset against the profit.

Kynthia

Yes the interest element from a mortgage on a rental property is an allowable expense. Are you aware of the other allowable expenses as that is a biggie to miss? Letting and management fees, ground rent and service charge, gas safety certificate, repairs and maintenance, etc. If you rent the property furnished you can either claim renewals or the 10% wear and tear allowance.