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Mortgage interest as expense
Ed-1
Posts: 3,994 Forumite
If a buy-to-let property has been bought in cash, is it possible to later raise a mortgage on your own residence (retrospectively) and deduct the interest as an expense against rental profits? Or could the purpose of the mortgage no longer be to fund the buy-to-let?
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Comments
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Mortgage interest allowed to be claimed is being reduced by 25% every year until it gets to zero. I'm afraid the party is over on that one. Look to claw back the money in other ways, such as rent increases.0
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Mortgage interest allowed to be claimed is being reduced by 25% every year until it gets to zero. I'm afraid the party is over on that one. Look to claw back the money in other ways, such as rent increases.
It's being replaced with a flat rate tax relief of 20% of the interest costs.0 -
that does not answer the questionMortgage interest allowed to be claimed is being reduced by 25% every year until it gets to zero. I'm afraid the party is over on that one. Look to claw back the money in other ways, such as rent increases.
this on the other hand does:
https://www.gov.uk/hmrc-internal-manuals/business-income-manual/bim45700
the technical term is withdrawing capital from the business and once again pay great attention to whether the capital account is overdrawn or not
OP you have asked a series of very technical tax questions over the last few days. If you seriously want to go ahead with your tax avoidance strategies I strongly recommend you pay for professional advice as you are skating on wafer thin ice basing your dealings with HMRC on free answers from a forum0
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