Is this investment property statment true?

Skyfire · 23 Jan 2007 at 18:08

The rent is taxable income, but there are lots of things you can offset against it to minimise the tax. The main one is interest payments on any loan you take out to purchase an investment property. I was advised by my accountant that providing it is done transparently, if you fund a purchase by extending your own mortgage, then the extra repayments would be allowable against tax... by transparency I mean that if you buy a £150K house on 1 February, and your mortgage statement shows a further advance for £150K was made on 30 January, then that's pretty transparent! I think it's much better to get a separate mortgage for the property though; no risk of the claim being rejected then. :confused:

Samtheman1k · 23 Jan 2007 at 18:19

If your accountant says that is correct, then I guess it is correct.

themistry · 23 Jan 2007 at 18:25

Samtheman1k said:
If your accountant says that is correct, then I guess it is correct.

I wouldn't rely on that advice. Not all accountants are created equal, and believing everything a single accountant may tell you may leave you pennyless!

To the original question, no idea, althought id like an answer too

TM

doopydug · 24 Jan 2007 at 06:07

Yes, it is true

Samtheman1k · 24 Jan 2007 at 09:46

themistry said:
I wouldn't rely on that advice. Not all accountants are created equal, and believing everything a single accountant may tell you may leave you pennyless!

Indeed, but would you rather trust a load of people on a forum, the majority of which have no idea about the ins and outs of taxation? (including me!)