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private loan tax deductible on rental property

666genny
666genny Posts: 2 Newbie
in House buying, renting & selling
If I had a private loan off a family member to buy a rental property, could I deduct the loan repayments when calculating profits on my tax return? There would be no interest on the loan.

Comments

  • gingercordial
    gingercordial Posts: 1,681 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    666genny wrote: »
    If I had a private loan off a family member to buy a rental property, could I deduct the loan repayments when calculating profits on my tax return? There would be no interest on the loan.

    No. Ignore whether or not it is private. The only thing you can ever deduct is interest, and if there is no interest there is no deduction.
  • Comms69
    Comms69 Posts: 14,229 Forumite
    10,000 Posts Third Anniversary Name Dropper
    Never understand the logic of this. I'm paying off my house, can I deduct that against tax....
  • anselld
    anselld Posts: 8,667 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    Comms69 wrote: »
    Never understand the logic of this. I'm paying off my house, can I deduct that against tax....

    It was acceptable in the ‘80s.
  • Comms69
    Comms69 Posts: 14,229 Forumite
    10,000 Posts Third Anniversary Name Dropper
    anselld wrote: »
    It was acceptable in the ‘80s.
    lots of things were acceptable in the 80's, including very briefly the criminalisation of homosexuals (in Scotland at least), we're almost 40 years on now :)
  • 666genny
    666genny Posts: 2 Newbie
    gingercordial wrote: »
    No. Ignore whether or not it is private. The only thing you can ever deduct is interest, and if there is no interest there is no deduction.

    Thanks. I knew that being able to claim the interest back was being phased out. In any other business, you would be able to claim back expenses for operating that business (e.g. cost of stock for resale), I just thought that it might work a similar way.
  • CarrieVS
    CarrieVS Posts: 205 Forumite
    Fourth Anniversary 100 Posts Combo Breaker
    666genny wrote: »
    Thanks. I knew that being able to claim the interest back was being phased out. In any other business, you would be able to claim back expenses for operating that business (e.g. cost of stock for resale), I just thought that it might work a similar way.

    The thing about capital repayments is that it's not really an expense because you get it back in equity.
This discussion has been closed.
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