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bigduckontax, Accountant
Category: Tax
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If I sell a buy-to-let property on which there is a mortgage

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If I sell a buy-to-let property on which there is a mortgage to be repaid, does the repaid mortgage reduce the gain or not?
Hello, I'm Keith and happy to help you with your question, but I bring bad news, sorry!
No, regrettably the mortgage has no effect on the capital gain. However, the interest element of the mortgage repayments is allowable against the income generated by the property. I do hope you have been claiming over your period of ownership.
I do hope I have answered you query.
bigduckontax and other Tax Specialists are ready to help you
Thank you for your excellent support.
Customer: replied 3 years ago.

Thanks, but you gave me all I wanted. I am clear on all the ways in which rental income can legitimately be offset with running costs, including mortgage interest, to reduce tax.

Delighted to have been of assistance.