Buy to Let Mortgage

Diddy Mau

Hello,
I do appologise for posting on here, only being a student member, but I thought this would be the best place.

if a person re-mortgages their property to purchase a secondary property for the buy yo let purpose.
Can the Interest off the remortgage be used as an expense in the SA tax return?
I know the original cost of the property and any expenses when purchasing this will be used when selling the property, for the purpose of Capital Gains Tax.
I am also aware that any agency fee's can be reduced, and when replaceing objects like for like. any extensions or improvements are for Capital Gains.
But I cant seem to find anything where the capital is raised through other means, like re-mortgage.

if anyone can help, then thank you very much.

Jmann

Diddy Mau wrote: »

if a person re-mortgages their property to purchase a secondary property for the buy yo let purpose.
Can the Interest off the remortgage be used as an expense in the SA tax return?

Yes. But have you informed the lender the purpose of extra borrowing?

deanshepherd

Agreed, but the purpose of the extra lending makes no difference for tax relief. It does not even matter which property the loan is secured on.

Diddy Mau

jmann & deansshepherd. thank you for the quick reply.
I originally was not sure, since the repayments would be against another property.
I agree you would have to tell thje lender the reason for the remortgage as this will affect the rate. again though, this option would be cheaper.
again many thanks, :-)

Jmann

deanshepherd wrote: »

Agreed, but the purpose of the extra lending makes no difference for tax relief. It does not even matter which property the loan is secured on.

Agreed.

My comment regarding informing the lender was in relation to the mortgage terms and conditions. Some lenders can be funny!

danielo24

Thanks for the replies too, I was also wondering about the same query.

Monsoon

danielo24 wrote: »

Thanks for the replies too, I was also wondering about the same query.

No you weren't