Renting PPR for a year - Will i lose Mortgage Relief?

[Caili]

Hi All,

Im thinking of going to Oz for a year and renting out my house which i bought 2 years ago. Would I lose my mortgage interest relief and where can i find out about whats involved in being a landlord?

Thanks

Caili

 

[ClubMan]

You cannot claim owner occupier mortgage interest relief if the property ceases to be your PPR. You probably need professional advice on whether or not this is the case in this situation. I presume that it would cease to be so the property would de facto become a rental investment property for the period of your absence and its rental. This forum's key posts and FAQ contain some useful summary information about being a landlord.

 

[Caili]

Thanks Clubman. I spoke to somebody in the revenue this morning, she said we would lose the mortgage relief for the year we are away but would get it back when we came back. Have alot of reading to do about whats involved in being a landlord

 

[ClubMan]

I spoke to somebody in the revenue this morning, she said we would lose the mortgage relief for the year we are away but would get it back when we came back.

That is correct. You can revert to claiming the relief once the property becomes your PPR again.

Have alot of reading to do about whats involved in being a landlord

Yes - you need to clarify the tax and other implications of temporarily converting your PPR to a rental property. You may need professional advice.