Mortgage Interest relief

[Jimbob2]

If my wife solely owns an apartment and I raise a mortgage to buy it from her so that now I am the sole owner I can rent it out and get tax relief on the rent agaisnt the interest that I pay, is there anythnig to stop me from doing this?

I would be due to pay stamp duty, but wouldn't that be at half the normal rate?

Am I missing something?

 

[Rhino 1]

Hi Jimbob,

A couple of years ago this was common parctice and the Revenue took note and have acted on it - and disallow the "extra" interest on your borrowings. I am not sure how they police this policy.

Your wife may also have a CGT bill on the disposal.