Increasing BTL mortgage for Residential Deposit...How is the new increase dealt with?
HorleyAccountants
Registered Posts: 4
Hi All, I've got a question I know you can answer...
If a client increases a buy to let mortgage by remortgaging and uses this money for a deposit on a residential property how is this release of funds dealt with in regards to CGT if and when the BTL is sold?
Im thinking that the release of funds are not part of the scenario as the original purchase price and the sale price are the deciding factors in calculating the starting point for CGT
but also a side note would be that the original purchase price and new remortgaged price creates a ratio of the amount of interest that can be used as a starting point for calculating an expense.
All advice appreciated
cheers
Mark
If a client increases a buy to let mortgage by remortgaging and uses this money for a deposit on a residential property how is this release of funds dealt with in regards to CGT if and when the BTL is sold?
Im thinking that the release of funds are not part of the scenario as the original purchase price and the sale price are the deciding factors in calculating the starting point for CGT
but also a side note would be that the original purchase price and new remortgaged price creates a ratio of the amount of interest that can be used as a starting point for calculating an expense.
All advice appreciated
cheers
Mark
0
Comments
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thought so Thanks0
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Agree with mrme89 re CGT however it may affect the amount of interests you can claim against the rental income of the buy to let.0
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As per Marie, interest claim will be restricted to the proportion attributed to the property purchase although it can be more complicated than this in some circumstances.1
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