Interest Only mortgages - What can you claim on your tax return?

[@nikkion2140]

Very helpful.

[@kimberleyshapcottpropertytax]

Glad it was helpful!

[@amcraswshaw]

Thank you for the videos. Very useful. I am a first time landlord of 1 BTL property which has been let for 12 months now. Really interesting regarding section 24. You mention for a basic rate tax payer there is no difference with the 20% tax credit which is applied. The biggest issue I have faced based on info from your videos is that student loan repayments are on the higher figure before the tax credit is added. This on the face of it (although I have not completed the tax return yet) adds several hundred £s per year to the tax bill. The property is currently in my personal name but I am debating moving this to a LTD company (within the 3 years). Annual rent is £9,600. Is there another way around this? Many thanks

[@kimberleyshapcottpropertytax]

I am afraid there isn't another way around it. There will be a cost to moving the property to a company though so you may need to do some numbers to see what the additional student loan payable compared to costs of moving into a company are. This will enable you to make a decision on what is the right option for you.

[@sureshdharmayat7222]

I bought BTL property for190000 , interest only. I have paid off 40000£ . Can I include interest on 40000 £ with interest on 150000£ as mortgage interest or not?

[@kimberleyshapcottpropertytax]

Any repayment of capital are not allowable for tax as this is paying off the loan and not a cost to you i.e. an expense of the property business.