So how long until the tax man comes down hard on landlords?
Discussion
And what would the PURPOSE of the new loan drawdown be?
All you seem to be doing is using the new loan to replace an old loan.
The new loan replaced the old loan . If the old looan was taken out to fund a BTL, then the new loan is still funding the purchase of the original BTL property which means thatb the interest on the new loan will still be allowable for offset against profits from that BTL.
If the new drawn down loan is greater than the balance that was paid off on the old loan, then it is obvious that the new loan is not FULLY in respect of the original BTL. Therefore, any interest on the new loan must be apportioned between those boprrowings which relate to the BTL and those which are for some other purpose.
Purpose still matters.
All you seem to be doing is using the new loan to replace an old loan.
The new loan replaced the old loan . If the old looan was taken out to fund a BTL, then the new loan is still funding the purchase of the original BTL property which means thatb the interest on the new loan will still be allowable for offset against profits from that BTL.
If the new drawn down loan is greater than the balance that was paid off on the old loan, then it is obvious that the new loan is not FULLY in respect of the original BTL. Therefore, any interest on the new loan must be apportioned between those boprrowings which relate to the BTL and those which are for some other purpose.
Purpose still matters.
Gassing Station | News, Politics & Economics | Top of Page | What's New | My Stuff