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Allowable B2L interest for tax purposes
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Max Mastro
Posted: 07 February 2018 09:43:40(UTC)
#1

Joined: 06/02/2018(UTC)
Posts: 3
Dear reader

I have a query about interest on 2 mortgages and whether both are allowable to be deducted from my rental income.

I lived in a house for about 10 years and it was worth around £1m. I decided to move and could have sold the house to help fund the purchase of my new house or let it out by obtaining a let to buy mortgage on it and by increasing my personal mortgage for the new house.

I raised a let to buy mortgage of £600k and increased the borrowing for my new house by £400k. I believe that the interest on the let to buy mortgage is definitely allowable but is the interest on the additional £400k allowable?

Many thanks for you help,
Max
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