Let or sell - tax implications?

[samiam]

We are moving house and taking out an interest-only mortgage on our current property in order to finance the purchase of a new home in the vicinity.
Our current home is mortgage free, and we intend to rent it to help service the loan. However, it has been suggested that we will not be able to claim interest repayments against rental income taxation.
New to the game, so maybe someone has some info about this? If true, is there any way around it?

 

[asdfg]

Anything here

In addition anything [broken link removed] about what is allowed to offset against rental income

 

[RainyDay]

We are moving house and taking out an interest-only mortgage on our current property in order to finance the purchase of a new home in the vicinity.

There are risks involved in this approach. Read this key post before you finalise your decision.