Taxation on rental income

C

Cerberus

Guest
I have 2 properties (and 2 mortgages yuk!)
- property #1 is being rented
- property #2 is where I live

Is the mortgage interest I pay on property #2 an allowable expense against rental income received for property #1?
 
The key thing here is what the loan is used for, not what property it is secured on. For example, where a rental property is (re)mortgaged and the money used to purchase/renovate a PPR the interest would not be allowable against rental income but the owner occupier could claim owner occupier mortgage interest relief (TRS) on it. Or where a PPR is (re)mortgaged and the money used to purchase/renovate a rental property then the interest would be allowable against rental income. Your post does not give enough detail to comment on your specific situation.
 
Thanks Clubman. Although my question was not very well phrased your reply actually answer's my question.
 
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