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Only interest on the loan(s) used to purchase/renovate a rental property can be offset against rental income. In some cases the loan(s) may be secured on properties other than the rental property. Note also that you cannot write interest off against rental income that you are also claiming owner occupier mortgage interest relief on (e.g. where the mortgage on a PPR is split between money used to purchase the PPR and money used to purchase/renovate a rental property). Based on your query I would recommend that you seek independent, professional advice on the tax issues relating to your property investment.gaffer said:If I have two properties and one is let and the other is a PPR - can the mortgage interest from both properties be deducted against rental income ? or is it only the mortgage interest from the rental property that can be written off as an expense. Many thanks.
deem said:could you not build your new PPR and then when renting current PPR then remortage the property, use the capital to make payment on your PPR and then bobs your uncle, you have higher mortgage on rental property. I know there would be costs associated with this, you would need to look at the tax saving on having lower taxible income over potential investment period to decide financially if worth while.
Personally i'd sell it and have lower mortgage to start with.
Yes. Bear in mind that if you rent it out within 5 years of purchase as an owner occupier then a clawback of stamp duty applies.gaffer said:... and have no CGT to pay as it still qualifies as PPR for a year?
so in theory you can have 2 PPR for 12 months.
After house is built and becomes my PPR do I have another 12 months to sell rental house without CGT
But not, for example, for the purposes of owner occupier mortgage interest relief, rent a room relief etc.asdfg said:Yes, for the purposes of CGT calc...
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