Could someone tell me what implications there are on my Tax returns if I re-mortgage an already let property, in terms of deducting interest payments and releasing the capital?
I need the capital to fix long standing problems with the property, such a garden fence, kitchen units and bathroom suite and a front driveway that floods due to council raising the payment and forcing all the neighbours to put in driveways. All the work will come to about 10,000. Any advice will be greatly appreciated
In message , RaPa writes
It is the use of the borrowed dosh that qualifies it for interest relief or not, not the method of borrowing or the security provided.
In this case it looks like all the borrowed dosh is being used on the maintenance of the property which receives the rent, so you should be able to claim all the interest against profit.
The 'release of capital' has no effect on the tax situation at all.
Also, an equity release from re-financing the Capital Account can be allowable - irrespective of the use of the new funds.
In message , Doug Ramage writes
Thats correct, yet a lot of accountants claim its not. But it is!
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