hopefully a simple one

[Taxdr]

dear all

I have a 40% deposit for a BTL and wish to raise finance for the rest
I have sufficient equity in my main home to remortgage with my current lender at a favourable rate compared with a BTL rate covering the 60% required
Would I be able to offset the additional interest payments on the (increased) residential mortgage in respect of income tax due on the BTL? If so how would i demonstrate that the raised finance was to fund a BTL?
Would there be any addItional tax implications on eventual disposal of the BTL?

Thanks

[Peter D]

As long as the equity you raise is wholly and exclusively for the purpose of the B2L and you declare the reason to the re-mortgage and the movement of the funds is fully documented and traceable i.e. through bank accounts, then you can offset the appropriate proportion of interest againt the B2L rental income. No there is no complication on disposal. Regards Peter

[Taxdr]

thanks