I have what I hope is a dumb question….
When the new taxation rules on mortgage interest relief are fully implemented I know that there will be still a small amount of relief.
As has been flagged over and over it is possible to have a high “official” rental income even if the real net income (due to mortgage payments is low).
Also – if my income is above £100k then I believe my personal allowance is lost.
So – suppose my official income (which can be made up of rental, employment or shares investments) after all rental maintenance expenses is £110k. At this point, no allowance for mortgages has been applied
Suppose then the allowable tax relief on the buy to let mortgages is £12k
So the official net income is now £98k
The question is – for the purposes of assessing personal allowance eligibility, am I assessed as having £110K income, or £98k income?
I think it SHOULD be £98k – ie I still have the personal allowance.
Am I correct?
Many thanks
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