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Where Taxpayers and Advisers Meet

Interest on buy to let transferred to commercial property

Yiannis17
Posts:133
Joined:Wed Aug 06, 2008 3:43 pm
Interest on buy to let transferred to commercial property

Postby Yiannis17 » Tue Jul 03, 2018 10:31 am

Morning

I have a client who has two sources of income on her 2018 tax return. A commercial property with no loan on it, hence no interest. The second a residential buy to let with a mortgage.

Under the new interest rules on buy to let property, can the interest on the buy to let be transferred, or part of it transferred to the commercial property? She has been advised by others it can be done?

Thank you

greybags1
Posts:47
Joined:Tue Jan 31, 2017 10:41 am
Location:NE Scotland

Re: Interest on buy to let transferred to commercial property

Postby greybags1 » Wed Jul 04, 2018 12:34 pm

I think s272B ITTOIA 2005 would restrict the loan interest and not allow reallocation. However, if the residential mortgage was explicitly taken out to fund the purpose of the commercial property and you have paperwork to support this then you may be able to get round the restriction.


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