Interest on property loans for tax

[shep1001]

If I buy a property as an investment & rent that property out, I understand there will potentially be a tax liability for the income generated from it. If you wanted to offset the interest from a property loan against that tax liability (along with the other allowable expenses) is it a requirement that the loan is raised against the property to be rented or can it be against another property if the sole purpose of that loan is to fund the purchase of the property to be rented.?

Shep

Edited by shep1001 on Sunday 23 September 10:38

[sumo69]

You can use any property as security for a new loan - the tax treatment is based on the purpose that the loan is taken.
So long as the funds are used to buy the property then the interest will be fully allowable for tax purposes.

David

[shep1001]

sumo69 said:

You can use any property as security for a new loan - the tax treatment is based on the purpose that the loan is taken.
So long as the funds are used to buy the property then the interest will be fully allowable for tax purposes.

David

Thank you.

[Eric Mc]

And don't forget the other costs you can offset against the rental income as well.