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interest allowable against rental income???

TigerTiger Feels At HomeRegistered Posts: 63
Hi

A family member has raised a further mortgage advance on their PPR to convert existing outbuildings into rental flats. Can the Interest on the further mortgage be charged against the rental income?

In addition the tenant shares a courtyard/garden area with the family in the main house..Does this create any additional allowance in so far as the shared use of the garden?

I'd appreciate some guidance on this....

Many Thanks

Comments

  • PGMPGM Font Of All Knowledge Registered Posts: 1,954
    I don't believe you can recognise the additional interest cost until the new flat is in a usable condition.

    And maybe apportion the the interest for the shared areas?
  • TigerTiger Feels At Home Registered Posts: 63
    yes its now being let, mainly short term holiday let but one longer period of occupation. It is just the one self contained annexe type ground floor flat...
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