Tax Relief at Source

T

theoaks

Registered User
Messages
25
We have just bought an investment home,since both of us are working full time can we claim TRS off this house?
We are already claiming TRS off our own family home so we're not sure if we're already claiming the maximum amount
 
Mortgage interest tax relief can only be claimed by owner occupiers on loans used to buy/renovate their Principal Private Residence. You cannot claim it on an investment property/loan. You can however offset interest on the loan used to purchase/renovate the investment property against rental income from that property. Note that you obviously can't claim owner occupier mortgage interest relief and offset the same interest against rental income (e.g. if the mortgage to purchase/renovate the investment property was secured on the PPR). The purpose for which the loan was used is used to determine what tax treatment applies, not the property on which the loan is secured.
 
We have gone for an interest only repayment for the 1st year, how do we go about offsetting interest on our loan against our rental income and how much is this likely to be worth in percentage terms
 
You have to do this when you file a rental income tax return. See the FAQ. If you don't know the first thing about this stuff then you really need to get an accountant/tax advisor on the case. To be frank I'd be very worried that somebody who didn't know the ins and outs of this sort of stuff in advance was getting themselves into the property investment business but each to their own. You might also want to look at this thread about interest only loans for investment properties.
 
You must log in or register to reply here.
Back
Top