Income Tax relief on remortgage interest
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jessica
Apprentice
Joined: 10 Mar 2005
Posts: 3
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 Posted: 01/06/08 - 05:39 Post subject: |
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| Hi there! Eight years ago I took a mortgage on my flat with the payment schedule of twelve years. I would like to get myself a house and to remortgage this flat and rent it at the same time. I intend to pay back debt for the new house with the rent I’ll get from my apartment. What I would like to know is if I can get an Income Tax relief on remortgage interest. Thank you in advance. |
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yves
Apprentice
Joined: 27 Nov 2004
Posts: 3
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| Posted: 02/05/08 - 01:11 Post subject: |
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| Well, taking all what you’ve said into account, I think that these are your options. If you take a loan for the purchase or repair of a property that you’re going to lend, you can get you can get an Income Tax relief on that property based on a remortgage interest. In case you remortgage your flat and buy a property that will be your PPR, you will be eligible for deduction only in case you use the remortgage for repair. However, you can get a relief of 20% on the mortgage for the newly bought property in case that it’s going to be your PPR. There are some more options. If you decide to rent the property you will buy, you will get the deduction of the loan interest based on rental income. I think it would be the best for you to see a solicitor before you take any steps. Good luck! |
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