IR50 Interest payments

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT member discussion
Help :?

I would like someone to confirm that I
can deduct the interest payments which I would have to pay, against rental income, if I obtained a mortgage on my current house,and used the money wholley to purchase another property to let out.

We do not wish to get a 'buy to let' mortgage.
and the mortgage would be interest only one.

If someone could advise it would make me :D

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    IR50 Interest payments
    bel wrote:
    Help :?

    I would like someone to confirm that I
    can deduct the interest payments which I would have to pay, against rental income, if I obtained a mortgage on my current house,and used the money wholley to purchase another property to let out.

    We do not wish to get a 'buy to let' mortgage.
    and the mortgage would be interest only one.

    If someone could advise it would make me :D
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:IR50 Interest payments

    Hi Bel,

    Yes, the interest is deductible against rental income just like interest in a company's accounts.

    Regards
    Steve
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:IR50 Interest payments

    Hi steve


    Thanks for the info,

    But does it matter that the loan is not obtained by
    a 'buy to let mortgage?
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:IR50 Interest payments

    No it doesn't matte about that. Interest is a deductible expense when it comes to rental profits and therefore it makes no odds whether it is a buy to let mortgage or not. The only difference here would be in the rates offered by banks which could affect the amount of interest you would pay - but I very much doubt the Revenue would go into it this far.

    Regards
    Steve
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:IR50 Interest payments

    Hi Steve

    Thanks for the confirmation.

    I am not in practice, so do not come across this sort of thing, but I just need to make sure I had read into it correctly. The trouble is you go to the mortgage advisors and they all say different things and to top it all when you ask about the
    tax element, they are not quite sure, which rings
    bells to me slightly, as you would think they would have this question asked on numerous occasions.

    Are you carrying on with your studies, to ACA or CIMA?

    I've just change jobs, so at this moment in time
    I have decided not to carry on with studying.

    This is the first time I have used the sight, as I always seem too busy. But I think I may be using it a bit more in the future, as in my new job, they use Peagus, and although we have a gentleman who comes in from time to time and gives us some training, it is always useful to speak to someone else who uses the system to exchange ideas.

    Thanks once again, and may be I might be able to help you one day :!: Anyway Cheers :D


  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:IR50 Interest payments

    Hi Bel,

    Thankfully all my studying days are finished! I did AAT then ACCA and have decided to hang my books up and retire!

    I am always reviewing posts on these forums and always reply with help when I can so if you have any queries post them on these boards as if I can't help there will always be someone that can.

    Best regards
    Steve

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:IR50 Interest payments

    Hi Steve

    Have you retired for good? or just being an accountant!!!.

    Unfortunately, I should have gone into Accountancy when I left school, but I took my parents advice and did not choose this career as they thought you had to be really good at Maths. I went into Underwritting Insurance, which was good, but on reflection I think it would have been easier to become qualified when I was younger, I may still achieve this goal, but at present I am getting to grips with my new job.

    Speak to you again, may be.

    Bel

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:IR50 Interest payments

    Oh God no - I've not retired for good it was just a figure of speech! I've retired from studying for good but unless we got six numbers on the works lottery this week then I think I'll be carrying on for at least the next 30 years!
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:IR50 Interest payments

    Made you :lol:

    Not had any luck with the lottery numbers either!!!

    Well must go now and finish my glass of wine.

Categories

Privacy Policy