scallywag said:Getting an interest only loan for the 1-bed, plus a 220,000 repayment loan for the new place, pushes my overall monthly payments close to the max I can afford (again assuming conservative rental income).
I don't see how the fact that it's an interest only loan is relevant if the equity release/top-up is actually used to purchase a PPR and not to buy or renovate the investment property. Who advised you on this matter?scallywag said:Clubman, I was assuming (and was advised) that the interest on the interest-only loan COULD be written off against the rental income. Anybody know if this is really true?
No - because you are using the mortgage top-up secured on the investment property to buy a non investment property.I suppose the basic question is: if I leave my current home and rent it out, and take out an interest-only loan to help me buy a new property, is that loan considered to be used for buying an investment property (with the associated tax benefits)?
If in doubt get independent, professional advice from somebody authorised and qualified to give taxation advice.If this is not the case, then I really think I cannot do it.
I'm not sure that choosing an investment based on the amount of craic that it yields is the most prudent approach but each to his/her own.gar123, good point. I'm trying to decide whether I want the hassle of renting. In a way I think it could be a bit of craic!
I would assume so since the landlord's PPSN is normally supplied.john_kelly said:1. When tenants fill out rent relief form to get tax credit, do revenue cross reference this to tax records ?
Yes - the stamp duty clawback is an all or nothing liability and not calculated pro-rata over the first five years or anything like that.2. If you are 4.5 years resident in your house when you rent it out, will revenue expect full amount of stamp duty difference ?
It is self assessed.If so, do they send a demand or is it self assessment ?
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