Which house to claim TRS on?

[tosullivan]

Recently bought a holiday home and plan to use it 2 days out of the week, every week. My own house is clear of any mortgage so am I eligible to claim PPR on the holiday home? I'm estimating it will be used for about 20-25% of the year.

 

[ClubMan]

No. It's obviously not you PPR so you cannot claim owner occupier/PPR mortgage interest tax relief on it. If you rent it then you can write off all mortgage interest against rental income though.

 

[tosullivan]

ok, so currently I have a mortgage out on the holiday home, but what if I was to remortgage my PPR and pay off the holiday home mortgage, could I start to claim TRS on teh PPR again?

 

[ClubMan]

No - because the equity release would not be use to purchase/renovate your PPR - it would effectively be used to cross mortgage your holiday home/investment property against your PPR. It's not what property the mortgage is secured on that matters but what the money is used for. The only way that you can claim owner occupier mortgage interest relief is to borrow to renovate/extend your PPR or move house to a property that you buy with a mortgage.