Investment mortgages Capital payments

Hi

Quick one for you. A friend has an investment property that he rents and last year he had a couple of months where he didnt receive any rent and had to pay the full mortgage himself and also there was a shorfall in the rent for three months were he had to again pay it. He cant claim any of this back on his form 11? All he can do is take his total rental income less expense of mortgage interest @75% and any other expenses related to the house which gives him his profit or loss.

Cheers for any advice

If you're asking can you offset capital repayments against rental income when calculating tax then I believe that the answer is "no".

Its the interest x 75% not the repayments.

He should be entitled to deduct 75% of the full amount of interest charged (regardless of whether or not he actually paid it).

Vacant periods are ignored provided it was let immediately before and after the vacant period, and the premises was not occupied by the owner during that period.

The capital element is not allowable regardless of how it was funded (ie by rent received of out of his own pocket).

The gross rent is the actual amount received.