Topup of investment mortgage and rental income relief

T

tmcgovern

Guest
Hi,

Great if you can help me here.

I have an investment mortgage and I write off the
interest paid against rental income as normal every year.

I'm topping up this mortgage (to release cash for lifestyle and maybe to reinvest a portion of it), the question is:

The interest paid of course will increase on the bigger mortgage from now on, but can I continue to write this off against rental income ? I had a suspicion that this might be disallowed according to tax rules (I really it hope not !).

Thanks for any answers. Tony.
 
Only monies borrowed for the purchase or repair of the property can be offset against income tax. Sorry to be the bearer of bad news!
 
Agreed. The reinvestment amount mentioned may qualify for interest relief but the lifestyle element won't be.
 
What sort of investment is the investment amount going into? If it's not your rental property (in which case you can offset interest against rental income) or your PPR (in which case you can claim owner occupier mortgage interest relief) then it will not qualify for any sort of interest relief/write off.
 
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