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bigduckontax
bigduckontax, Accountant
Category: Tax
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Experience:  FCCA FCMA CGMA ACIS
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I have had a rental property for about a year and a half and

Resolved Question:

i have had a rental property for about a year and a half and now i am interested in buying another property, to do so i would like to take some capital out of my first property to buy another. when i talked to my accountant he told me that the tax office wouldn't allow me to take capital out of the first property because then the interest would be higher and i could offset it against my tax and pay less tax.
Submitted: 10 months ago.
Category: Tax
Expert:  bigduckontax replied 10 months ago.

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

Customer: replied 10 months ago.
hi
Customer: replied 10 months ago.
hello Keith, have you had chance to have a look at my question?
Customer: replied 10 months ago.
Hello Keith, are you there?
Expert:  bigduckontax replied 10 months ago.

Yes, I am sorry but Just Answer has managed to loose the post.

It is nothing to do with the tax office, they cannot refuse to allow you to take out an additional loan. They have no authority in that matter. Any interest charged would be allowable against the rental income from the relevant dwelling.

I do hope that my reply has cleared the air.

Customer: replied 10 months ago.
just to clarify if i wanted to remortgage and take out £30,000 from the property could i spend it on what ever i want?
Expert:  bigduckontax replied 10 months ago.

Well, in theory yes, but unless it went into rented property support then HMRC would have valid grounds for refusing to allow the interest against rentals.

bigduckontax and other Tax Specialists are ready to help you
Customer: replied 10 months ago.
thank you
Expert:  bigduckontax replied 10 months ago.

Delighted to have been of assistance.

Thank you for your support.

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