Buy-to-Let interest relief.

fruitdogs

Just received the excellent Buy-to-Let Mortgage guide. We have owned a rental property since 1992 and don't ever appear to have received or claimed mortgage interest! The taxman works out our liability. We did do a tax return every year, but as it was the same every year, they said no need to keep doing one. Spoke to the bank 2 years ago and they said relief on mortgage interest payments had stopped. Does anyone know how we go about checking with the taxman and how far back you can go?Many thanks in advance.

amnblog

This is a question for a qualified accountant and you should appoint one to assist you.

kingstreet

Mortgage interest relief on residential mortgages ended years ago, so what we have here is another one of those "ask the wrong question, get the wrong answer" moments.

Either that or you asked the wrong person/organisation.

Interest on a mortgage used to purchase a business asset is an allowable expense against the rental income from that business asset.

As amn has suggested, you now need to contact an accountant to establish how you reclaim your overpayments and ensure you pay the correct amount of tax in future.

Brighty

The tax man may calculate your liability, but he can only go by the numbers you tell him, it's up to you to put the numbers on your tax return. Seems odd you don't have to do a tax return, surely the rent has gone up since 1992? Insurance will change each year, maintenace costs etc etc, how can your profit have been exactly the same for the last 22 years?

Brighty

fruitdogs

Our Letting Agency give them the figures. We did a return for the first 15 yrs. The return is simple, and figures from the Agency suffice. Thanks for the reply.

Thrugelmir

fruitdogs wrote: »

Our Letting Agency give them the figures.

Have you told the Letting Agent that you've got a mortgage on the property?

fruitdogs

Yes we have told the Agency. Might be worth checking again. Thanks.