CGT on second property

[Incredulum]

But OP doesn't mean income within s266 ITTOIA. OP has stated there are receipts - of the mortgage payments - therefore there is income within s266 ITTOIA. OP means there is no "profit"; you focus on what he thinks constitutes income, rather than what the taxes acts think constitutes income..


If the property is furnished, then M&D are entitled to a schedule A loss that may be carried forward of 10% of the mortgage paid. Quite clearly they are within Part 3 of ITTOIA (Property Income).

We don't actually know:

1. Whether these payments are made to M&D who then pay the bank, or whether it is made directly. It does not matter, T is taking on a debt of M&D, therefore there are receipts arising from exploitation of land.

2. Whether the mortgage payments are interest only or repayment. In the latter case there are clear rental profits which shoudl be declared as taxable - I hope you agree.