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TonyTax
TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15940
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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I took out an interest only mortgage with Nationwide on 1 may

Resolved Question:

I took out an interest only mortgage with Nationwide on 1 may 2007and paid a monthly interest rate of £453.33 until I paidit up on 23 august 2013.
The mortgage was for £100000 and the redemption was £103345.59
Was I or am I entitled to claim a tax benefit and if so what is the procedure
Submitted: 3 years ago.
Category: Tax
Expert:  TonyTax replied 3 years ago.
Hi.

Can you tell me what the mortgage funds were used for please.
Customer: replied 3 years ago.

to help my daughter financially

Expert:  TonyTax replied 3 years ago.
Thanks.

Leave this with me while I draft my answer.
Expert:  TonyTax replied 3 years ago.

I'm afraid that you were not entitled to tax relief for the interest paid on a mortgage to provide funds to help your daughter financially.

Tax relief is only available for interest paid on a loan where the funds were used for a business purpose, buying and letting of a property including a property which may been the owner's main home before it was let or the purchase of a property before 1 April 1988 for a dependent relative to live in. Other qualifying uses are set out here and here.

I hope this clarifies things for you. Let me know if you have any further questions.

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