Tax implications for releasing equity on 2nd home

Hi,

My husband and his brother own a house for 7 yrs. My brother in law lives there as his PPR but is buying a house now with his partner.
They plan to rent out the house they both own. Brother in law would need to release €25k equity (LTV very low so shouldn't be a prob). My husband would do the same to keep things equal. Obviously its not my husbands PPR, is there any tax liability for them doing this?

Thanks in advance

Not sure what sort of tax implications you are thinking of?

For one thing when the property is rented out only interest on the amount outstanding originally used to purchase the property can be set against rental income when doing a rental income tax return. Interest on additional amounts released cannot be offset in this way.

Obviously there are various tax and other implications of converting a former PPR to an investment/rental property. These are covered in detail in the Property Investment forum FAQ, key posts and other general posts on this topic.

I was wondering if CGT would apply as its not his PPR?
They will be declaring it as a rental property but the release of equity would be done before that if you like because it is required for brother in law for his deposit or stamp duty.
I get what you mean about not being able to offset the additional amounts for tax returns which is ok but do you think thats it?
Will read the the Property investment FAQs now.
Thanks.

CGT only applies when you sell an asset.

Excellent, thanks.

And any mortgage issues (e.g. mortgages secured or outstanding on a property) are irrelevant to CGT issues when they arise anyway (at disposal time).