Working a BTL and Residential in tandem - tax saving

marsman802

Hi

I currently have a residential mortgage shared with my wife and my wife has a BTL mortgage in just her name.

To reduce her tax bill we are looking at loading up her mortgage as currently it is 30% LTV. We know the tax deductibles on mortgage interest are changing in 2017 but that means we will still see a big benefit before that point.
Our residential is currently 45% LTV so good equity in both.

My question is how do we tackle this one so all the lenders understand the movements that are taking place and that we are trying to borrow a huge sum on the BTL in addition to the current residential?

thanks

amnblog

You tackle this by consulting an Accountant for tax advice first Marsman.

I suspect what you are told will put you off the idea as the tax laws do not work like that.

marsman802

Cryptic - what's the issue? I just want to know how to get it to work in tandem

amnblog

http://www.hmrc.gov.uk/manuals/pimmanual/PIM2005.htm

Thrugelmir

This is a more appropriate link.

http://www.hmrc.gov.uk/manuals/bimmanual/bim45700.htm

marsman802

Thanks guys - will have a read through. Got my other bro in law over later and he's a high earner with multiple BTL so he will likely have some guidance as well on this.

I only recently learnt that u can claim BTL app fees as part of the tax deduction so we're lodging claims on my wife's prior tax bills.
Lots of useful info out there

amnblog

You should engage an Accountant Marsman.

Don't try to work this out yourself.