Releasing equity from investment property

B

bcollins

Guest
I have an investment property which is currently rented. I wish to complete some refurbishment of my own house and would like to take out a top up loan on the ivestment mortgage and use this money to improve my own house.

Can anyone tell me what tax implications there are in doing this ? Any help would be appreciated.
 
The manner in which the loan is utilised rather than how it is secured is what matters.

Accordingly you will ( as long as the work is for the purchase /improvement or repair of your principal private residence) be entitled to TRS on the top up loan, subject to normal limits. i.e. if you have already exceeded the TRS interest allowance then no further TRS claim will apply. The interest is not relevant to the investment property rental calculation.

TRS limits at : - [broken link removed]
 
Fair enough - but what I am concerned about is that I am claiming reliefs on the rental income of the investment property. How does it affect these reliefs ?
 
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