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BTL Tax Relief
AuntyJean
Posts: 589 Forumite
in Cutting tax
I believe you can offset the interest payments on a BTL mortgage against taxable income?
If I buy my half of the house when I divorce and let it out, would I be better off taking out a BTL mortgate for more than my half (to cover additional costs and thus increasing the interest payments) or would I be better keeping the mortgage to a minium and paying the extra costs out of my own pocket?
We are talking about the difference between £65K and say £80K (approx £12K would go into a bank account and the rest would be spent on doing the house up).
Would the tax man only give relief on the £65K if I borrowed £80K. Also what if I move the mortgage after say 3 years? It is my understanding that you do not get relief on any subsequent borrowing.
If I buy my half of the house when I divorce and let it out, would I be better off taking out a BTL mortgate for more than my half (to cover additional costs and thus increasing the interest payments) or would I be better keeping the mortgage to a minium and paying the extra costs out of my own pocket?
We are talking about the difference between £65K and say £80K (approx £12K would go into a bank account and the rest would be spent on doing the house up).
Would the tax man only give relief on the £65K if I borrowed £80K. Also what if I move the mortgage after say 3 years? It is my understanding that you do not get relief on any subsequent borrowing.
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