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Ash
Ash, Solicitor
Category: Law
Satisfied Customers: 10916
Experience:  Solicitor with 5+ years experience
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I took a mortgae on my new house so I can afford to keep my

Resolved Question:

I took a mortgae on my new house so I can afford to keep my old home and let it. Can I deduct the intereset of this mortgage from my revenue coming from the tenant for the pupose of tax return etc.?
Thanks
Submitted: 1 year ago.
Category: Law
Expert:  Ash replied 1 year ago.

Hello my name is ***** ***** I will help you.

Just to be clear it's the property you live in, not the one you rent out which has a mortgage?

Alex

Customer: replied 1 year ago.
HiLet make it clear Home1 and Home2. I live in home2 and I used to live in home1. In order to afford to keep home1 I took 2 mortgates 1. Mortgage for home1 and another on home2.
I let home1 and there is a revenue of approx £7,000 anually. I deduct from this revenue the intereset of the mortgage of home1. Can I do the same for the interest of the mortgage of home2?Thanks
Expert:  Ash replied 1 year ago.

Thanks. The answer is no.

If you had taken a buy to let on home 1 only which is rented out then yes the interest would be deductible.

But you can't deduct the Interest for home 2 because it is not let out. It needed to have been secured on home 1 which would have meant it was allowable.

I am sorry if this is not the answer you want and certainly not the one I want to give you, but I have a duty to be honest.

Can I clarify anything for you about this today please?

Alex

Customer: replied 1 year ago.
Thanks
Expert:  Ash replied 1 year ago.

If I could invite you to rate my answer before you go today please, otherwise the site does not credit me for the time spent with you today. Thanks and good luck. Alex

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