Tax relief on equity release

[8thegeorge]

Good morning
My wife rents out an unfurnished property. She obtained a BTL interest only mortgage two years ago in order to finance improvements to our own house. We recently received a letter from the mortgagees to advise that changes are in the pipeline on tax relief on BTL. Because the equity release was not used to improve the rented property we have never claimed tax relief on the loan. Am I correct in assuming that we are not entitled to such tax relief and if so that we can ignore the mortgagees letter.

[pawncob]

Your assumption is correct.

[bd6759]

The more pertinent question is to ask why you never claimed the interest as a deduction. Withdrawing capital from a business is an allowable purpose for loan interest.