Allowable Interest on UK Rental Tax

[Scrambler]

Can anyone tell me if interest allowable on UK rental income is only on loans actually mortgaged on the property or would interest on a top-up of an Irish mortgage also be allowable?

I know that the Irish Revenue allow interest as long as the loan was for the purposes of buying/improving the rental property regardless of whether it was mortgaged on the rental property, but not sure of the situation in UK.

Thanks,

S

 

[Scrambler]

I checked it out and it would appear that it would be allowable mortgaged on a different property - similar to here.

Health warning - I found this from UK tax forums, not revenue sources.

 

[DonKing]

If the top up loan or mortgage is used to buy or improve a foreign property then the interest(75% of it from 2009) on the top up loan can be offset against rental income received from a foreign property.

I presume that the UK is not a special case and is no different to other foreign countries - not 100% sure on that.

Note you cannot offset interest on a Mortgage used to buy foreign property off rental income received on a property in Ireland and vica vearsa

 

[Paddy199]

http://www.revenue.ie/en/personal/buy-sell/foreign-property/index.html

See here. Exactly like Irish Rental computation except, its ringfenced under Schedule D Case III (foreign rentals). i.e. you can't offset foreign rental expenses against irish rentals and vice versa. Same with foreign capital allowances and losses, they are ringfenced and carried forward.