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TonyTax
TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15950
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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Are you familiar on 'let-to-buy' schemes? My main question

Customer Question

Are you familiar on 'let-to-buy' schemes? My main question is whether they qualify for mortgage interest tax relief?
I have raised a mortgage on my existing house which I own outright and I will let out. The mortgage money will partially finance the pr0perty I am buying to live in.
What tax reliefs will I be able to qualify for ?
Submitted: 1 year ago.
Category: Tax
Expert:  TonyTax replied 1 year ago.
Hi. You will be able to claim a deduction for the interest you pay against the rental income. You are treated as if you have introduced capital into a business and so the interest you pay is allowable. See Example 2 here: http://www.hmrc.gov.uk/manuals/bimmanual/bim45700.htm You should be aware that there are plans to restrict the amount of tax relief given for mortgage interest on let property from 6 April 2017. You can read about that here: https://www.gov.uk/government/publications/restricting-finance-cost-relief-for-individual-landlords/restricting-finance-cost-relief-for-individual-landlords Look here for the types of expenses you can claim against rental income: http://www.which.co.uk/money/tax/guides/tax-on-property-and-rental-income/allowable-expenses-and-allowances/ I hope this helps but let me know if you have any further questions.
Expert:  TonyTax replied 1 year ago.
Hi.
I'm just following up. Did my answer help or do you still have questions?