equity relase on buy to let properties

[fstruthers]

might sound like a daft question but can you get equity release on buy to let properties if they've gone up like you can on your main property (ie you only have to pay the cg tax when you sell)??

Thanks! (i'm new to all this..)

 

[NorfBank]

Yes.

 

[robd]

might sound like a daft question but can you get equity release on buy to let properties if they've gone up like you can on your main property (ie you only have to pay the cg tax when you sell)??

Thanks! (i'm new to all this..)

Yes you can and only have to pay CGT when you sell. However you can only write the interest on the original mortgage off against rent for Income Tax purposes. Also this advice may be irrelevant as it relates to Ireland not the UK (you said in another post you have a buy to let in Scotland).

 

[NorfBank]

I don't think this is true RobD. If you release equity from the BTL property to buy another BTL then you can offset the repayments against rental income. In Ireland. correct me if I'm wrong please.

 

[robd]

I don't think this is true RobD. If you release equity from the BTL property to buy another BTL then you can offset the repayments against rental income. In Ireland. correct me if I'm wrong please.

From:

[broken link removed]



Under the tax law relating to rental income, a person may claim a deduction from gross rent in respect of such items as:
·[FONT=&quot] [/FONT]Ground rent
·[FONT=&quot] [/FONT]Rates
·[FONT=&quot] [/FONT]The actual cost of maintenance, repairs, insurance, and management fees
·[FONT=&quot] [/FONT]Wear and tear on furniture and fittings
·[FONT=&quot] [/FONT]The interest on borrowings used in the purchase, improvement or repair of the premises
in arriving at the taxable rent.



Equity release does not fall under that category so is therefore not deductable.

 

[NorfBank]

"The interest on borrowings used in the purchase, improvement or repair of the premises"

Thus if you release equity from the BTL to purchase/improve/repair another BTL, you can offsest the interest on these borrowings??

 

[robd]

"The interest on borrowings used in the purchase, improvement or repair of the premises"

Thus if you release equity from the BTL to purchase/improve/repair another BTL, you can offsest the interest on these borrowings??

Of course but thats to do with the tax treatment of the other property not this one.

 

[liteweight]

If one releases equity on a buy to let against another purchase then interest on monies borrowed are allowed against rental income on 2nd property.