Income tax - anyone?

[thebullettrain]

Does anybody quickly know the rules on deducting interest on a mortgage (a BTL) against income tax? I have been told that any interest expense could be deducted against one’s actual income tax.

Any thoughts – Eric maybe?

[blindswelledrat]

Yes, I believe he does.

[Eric Mc]

Interest incurred on a loan to purchase a rental property is fully allowable against the rental income from that property.

Note that the interest is deducted as an expense against the rent - not a deduction against any tax liabilities.

The reduced rental income (net of interest and the other allowable rental costs) is the figure used when calculating your personal tax liability for the year.

If, after deducting all the allowable rental costs the net rental situation shows a loss, that loss can be carried forward against future rental profits.

[mybrainhurts]

thebullettrain said:

Income tax - anyone?

Certainly, sir, you can have mine with pleasure....

[blindswelledrat]

Told you.