Mortgage interest relief when non resident

W

waltzer

Registered User
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Hi all,
Any advice appreciated. I will leave the country next month and thereafter will be employed in Austria. I currently receive mortgage interest relief and am unsure as to whether I will continue to when not paying PAYE in the state. I currently pay a lot of tax at the higher rate of tax and was wondering if there is some carry over of this for the mortgage interest relief credit.
 
If the property ceases to be your owner occupied PPR (Principal Private Residence) then you must stop claiming owner occupier mortgage interest relief. With some exceptions (e.g. being seconded to work abroad rather than simply choosing to go) emigrating would normally mean the loss of PPR status. There may also be other implications in this situation (e.g. need to inform lender, insurance implications, tax issues if you rent the property out etc.). If in doubt you should get professional advice for your specific situation.
 
Thanks. It will be rented out for 6 months only. Do you know if the PPR 1 year exemption that applies to CGT on disposals also apply to Mortgage interest relief, meaning that I could claim it for the duration of my rental period?
 
No - definitely not.

Also - if you rent the property out within 5 years of purchase then a clawback of stamp duty will also be triggered.

The overall potential implications of renting out a former PPR are detailed in many other threads such as this one.
 
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