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bigduckontax
bigduckontax, Accountant
Category: Tax
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Experience:  FCCA FCMA CGMA ACIS
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BigDuck, I have a question please. I bought buy to let

Resolved Question:

hello BigDuck, I have a question for you please.
I bought buy to let property using a mortgage secured on my main home. Since this is not a BTL mortgage - am I still able to use interest to offset rental income? does HMRC specifically require that finance is of BTL nature in order to qualify for it being used in BTL profit and loss (mortgage interest against gross rent)? thank you
Submitted: 1 year ago.
Category: Tax
Expert:  bigduckontax replied 1 year ago.

Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question.

As you have taken a mortgage to acquire your BTL then the interest element only is a normal charge against rental income. I would be inclined to so claim the interest. It is, however, only allowable at the basic rate of taxation. Also the taxation is on turnover. There used to be an allowance of 10% for wear and tear, but this is now confined to actual expenditure. These rules come into force 2017 to 2020 and you can read full details of the effects of the Chancellor's unexpected clamp down here:

http://www.ibtimes.co.uk/buy-let-clampdown-explained-four-ways-uk-tax-changes-would-be-bad-landlords-1552302

I am so sorry to have to rain on your parade. The media comment is that it effectively means an end to BTL.

bigduckontax and other Tax Specialists are ready to help you
Customer: replied 1 year ago.
thank you
Expert:  bigduckontax replied 1 year ago.

Delighted to have been of assistance.

Thank you for your support.