Remortgaging / interest relief

[clon2]

I have a rental property on which the mortgage is now quite low. Consequently, the interest offset against the rental income is low and I am paying tax on the balance. If I were to remortgage my property by say €200,000 in order to buy another property (rented for only 2 months a year/personal use for the remainder), would it be possible to offset the interest against the original mortgage.

 

[ClubMan]

No. You can only offset interest on any loans used to purchase/renovate a rental property against rental income on that property. If you top up the mortgage on the rental property to buy another one then you cannot offset interest on the topup against rental income from the remortgaged property. You can offset it against rental income on the new property but in this case that would be of limited benefit if the property is only rented 2 months of the year.