Home For accounting professionals General accounting discussion
Current updates regarding coronavirus (Covid-19) and the precautions AAT are taking will be continually updated on the below page.

Please check this link for the latest updates:
We hope you are all safe and well and if you need us we will be here. 💚

interest allowable against rental income???

TigerTiger Feels At HomeRegistered Posts: 63

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


  • 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...
Sign In or Register to comment.