Mortgage Interest

[Habib123]

Me again,

so as people are aware, the government have now scrapped the wear and tear allowance and are gradually eliminated the deduction of mortgage interest from 2017 in yearly chunks of 25% up until April 2020 where you will not be able to claim any deduction of mortgage interest to reduce your taxable profit.

My question is is this specific only to the mortgage interest or does it apply to the other fiannce costs such as ground rent, service charges, reapirs, sundry expaneses, accountancy fees?

thanks,.

 

[Longterminvestor]

As far as I a aware it only relates to mortgage interest. However, I dont think they will ever be able to remove mortgage costs (aka finance costs) which are offset against properties held in a company? Worth having a chat to you accountant I would suggest.

 

[diyhelp]

An interesting article comparing the benefits of buying property in a company and offsetting mortgage interest charges:-

http://www.thisismoney.co.uk/money/buytolet/article-4596926/Should-limited-company-buy-let.html

 

[Longterminvestor]

Very interesting to see the level at which it becomes sensible to use a company structure for your property investments. I get the impression the UK government would rather private buy to let investors disappeared, leaving it to the corporate giants. Am I wrong?

 

[FWL]

It is always the same with a new investment market. The authorities will encourage small players to get involved then when it gets to a certain size regulations come in making it unaffordable to small investors. This is when large corporate investors come and take over “on behalf of the government”.