Interest on borrowings to be offset against rental profits

[ronaldo]

Okay, so I know that you can offset 75% of the interest on borrowings to purchase an investment property against rental profits when calculating your tax liability.

I also know that expenses to bring a property up to a 'rentable standard' prior to the first letting cannot be offset against rental profits. However, 75% of interest on the borrowing to bring it up to this standard be offset?

The property I have in mind requires new kitchens, bathrooms and radiators (not upgrades because the previous ones have been ripped out).

 

[cremeegg]

A new kitchen is not an expense, however it would be eligible for capital allowances. In effect these are more valuable to reduce your tax bill, although they are spread over a longer period.

I think that the interest on the renovation would also be deductible at 75%