Taxation Question

[Mike]

Hi all

Anyone know their taxation rules.......................

Question..............someone buys a house 15 years ago with a 36K mortgage for 57K. Can they release the balance now ie 21K to repay their main residence property and then claim back tax on the interest payments relating to the 21K ?????

Any ideas and if so where is it written.........there is a challenge !!!

Mike

[SMHarman]

There is no longer any tax relief on Mortgage interest payments for purchase of your principle private residence.
Mortgage interest on a rental property can be offset against the revenue stream from the rental of that property, this is the only tax break for mortgage interest (buy to let).

[Mike]

Originally Posted by Mike

Hi all

Anyone know their taxation rules.......................

Question..............someone buys a house 15 years ago with a 36K mortgage for 57K. Can they release the balance now ie 21K to repay their main residence property and then claim back tax on the interest payments relating to the 21K ?????

Any ideas and if so where is it written.........there is a challenge !!!

Mike

Not very well written.......the house brought 15 years ago is now rented out. Thus the release funds would be paying off a different house MR

[SMHarman]

Then the answer is yes.

All Mortgage interest on the rental property is deductable against rental income on that property.

[AndrewJ]

I know I am a little out of my depth in this thread, but I shall offer one form of advice.

Drop into your local Citizens Advice Buerau, they are excellent volunteers and they really do endevour to help.

They saved this family a few times, and most towns have one.