CGT

The re-mortgage has no relevance for CGT.

The interest on the 50K equity withdrawal may be allowable against your rental income (irrespective of its purpose).

An example (Example 2) is given in the Inland Revenue's Business Income Manual at section 45700 :

AFAIK there are two was to remortgage and end up with cash left over.

I assume you mean you are taking out a mortgage that is 50k more than you currently owe? If so I don't see how that is relevant to tax - surely a loan is not income or gain.

If you are just moving the same debt and the BS is "giving you" 50k then that is an interesting question (and an interesting deal). I would also be interested to know if "cash back" counts as income and when. These payments (a few k) are often linked to you staying with the BS for x number of years. If you leave them before that time the "gift" has to be repayed.

Is this taxable income? If so: Is it to when (A) received or (B) when x years are up and it is irrevocably yours? If (A) and you have to pay it back in a later year do you get the tax back.

Thanks Doug,

Thats really good info!

What I want to do it use this 50K to pay my mortgage off completely for my primary residence and leave the debt all on the rental property .......is that feasible?

I am unclear about the 50K being allowable against my rental income.

Yes. But I assume (one) of the reasons for doing so is to replace non allowable interest on your home with allowable interest on your investment property?

Note that I said the "interest" on the extra 50k loan could be allowable against rental income, if you meet the relevant criteria in the HMRC Business Income Manual.

Doug you are correct, I want all the debt on my rental property but all I really want to know is do I need to tell the tax man. Reading the inland revenue guide from you it explains my situation but does not state I will need to fill in a tax self assessment.

On the question of cash back....I am not getting any benefits just a straight forward buy to let re-mortgage at a rate of 4.69% releasing

If you believe that all the interest on your re-mortgage qualifies for tax relief, there is no need to tell HMRC as such - merely include it on the Land & Property pages of your Self Assessment Return.

When did your rental business commence?

The main Inland Revenue booklets in respect of the Income Tax aspects of Rental properties (including Rent A Room Relief) are IR87 and IR150 (now withdrawn).

IR87 is downloadable from HMRC website.

Usually none, unless it is owned by a limited company.