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Ask Your Own Question, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 5112
Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
Type Your Tax Question Here... is online now

I currently own a house in London. I wish to move to Brighton

Customer Question

I currently own a house in London. I wish to move to Brighton and rent out my London house. I will take out a mortgage on both properties. Can the interest on the portion of the loan that is taken out on the Brighton property, that is used to finance the retention of the London property as a let to buy, be offset against tax. i.e. If Brighton is worth £100K and has a mortgage of £40K and London worth £100K with a mortgage of £70K, I know I can offset the interest from the £40K mortgage, but can I also offset £60K of the £70 Kmortgage?
Submitted: 2 years ago.
Category: Tax
Expert: replied 2 years ago.
Hello and welcome to the site. Thank you for your question.

Please clarify for me...

you wish to take a £70k mortgage on a London property that would part finance the purchase of property in Brighton and there will be a £40k mortgage on the Brighton property.

What makes you think you can offset the interest from £40k mortgage?

Many thanks
Customer: replied 2 years ago.

Perhaps 'offset' is not the right word, but on it says that I can expense interest on a property loan (which is what I take the £40K mortgage to be).

Expert: replied 2 years ago.
Thank you for your reply.

Based on what you have stated in the opening statement... moving to Brighton and wishing to let the London property and secure a mortgage of £70k on it.

As the london property would become a let property then you would be able to offset interest on £70k against the rental income from letting the London property.

The mortage interest on brighton property does not come in as the amount borrowed is used to finance the purchase of property that is your main residence.

More information on this can be found here

I hope this is helpful and answers your question.

If you have any other questions, please ask me before you rate my service – I’ll be happy to respond.

Expert: replied 2 years ago.


I notice you have viewed my response to your question about tax relief on mortgage interest (JACUSTOMER-xvf39s2s- Last Viewed on 6/3/2015 at 10:01 AM).

I am just checking to see if you have any issues relating to your question that I may not have addressed.

Please let me know if I can be of further assistance.