Rental of former PPR

[gilboy]

Hi

I am currently building new property with the intentions of renting out former PPR which i own for 4 years. Planning on switching the mortgage to an investment type for this property so will loose the TRS on this property. When i move in to my new property should i be able to claim TRS on the new property given i will have an investment property also
Thanks

 

[ClubMan]

Yes. And you will be able to claim the preferential "FTB" rates of relief for as long is left of your first 7 year period when you do. You will also be able to set all interest on the outstanding mortgage on the former PPR/now investment property against rental income. There are also other tax and general implications of renting a property so check the Property Investment FAQ and key posts etc.

 

[lasertek]

So Clubman are you saying that even though you are purchasing a second property and are therefore no longer a FTB you can still claim FTB relief on your mortgage for the remainder of the 7 years? I thought you lost this once you were no longer a FTB?

 

[ClubMan]

Yes. The term "FTB" in this context is misleading even if Revenue themselves. For example if you buy a house and live in it for 4 years and then move to a new home then you can still claim the remaining 3 years of "FTB" relief on the second home/mortgage. The rules for when you lose your "FTB" owner occupier mortgage interest tax relief status and your FTB status for the purposes of stamp duty are different.