Offsetting PAYE Code against S/E Income

[damiansdad]

I am currently employed full-time with a car and have a negative tax code due to this, and I am considering buying BTL properties with a mortgage. Although the income covers the mortgage payments and I have to put down a hefty 25% deposit, can I offset any of these costs against 1) My BTL Income and 2) My current PAYE?

[mullet]

Your property activity will be totally separate from your PAYE income, and property losses can only be carried forward against future property profits. Mortgage interest (and other allowable costs) can be set against property income, but the deposit cannot. It is capital expenditure which is part of the purchase price ... the purchase price itself is deductible against the selling price to produce a capital gain or loss when you eventually sell.

[damiansdad]

Thanks Mullet, not the answer I hoped for but helpful none the less. I will consider putting the S/E side of income onto my wife as she has no income therefore should benefit from this anyway