Help please.
I ran a business from a rented house, also my residence, and claimed 25% tax relief from the rent.
I have now purchased a property that I use as my PPR and run the same business from, I believe that should I claim 25% tax relief from the mortgage payments (capital and interest), on selling the property I will be libel for 25%.CTG. If the mortgage is ‘interest only’ will I still be libel for CGT?
Thank you,
Graham
CGT Relief
2 posts • Page 1 of 1
by Simon Sweetman on Mon Sep 06, 2004 9:04 am
If you can substantiate the claim that you use 25% of the property for business (and the Revenue will insist that there is 25% exclusively used for business) then you can set off your mortgage interest costs (not capital repayments) against business income.
It is then likely that you would indeed pay CGT on 25% of the disposal. However that part would be the disposal of a business asset and after two years the gain is reduced by 75%.
Whether it is an interest only mortgage will make no difference at all.
simon.sweetman@btinternet.com
It is then likely that you would indeed pay CGT on 25% of the disposal. However that part would be the disposal of a business asset and after two years the gain is reduced by 75%.
Whether it is an interest only mortgage will make no difference at all.
simon.sweetman@btinternet.com
- Simon Sweetman
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2 posts • Page 1 of 1
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