Some time ago, there were articles in the tax press about the allowability of interest on a remortgaged buy to let property. I had always believed that it was fine to claim interest on a remortgage up to the level of the value of the property when it was first let. However, I read that HMRC changed its guidance in 2017 and there was now some doubt, as the new guidance simply said that the new loan must be wholly and exclusively for the purposes of the letting business. Opinions differed as to whether this was a genuine change and hardening of HMRC's attitude or whether it was just clumsy drafting. Opinions also differed as to whether or not this would exclude claiming interest relief where the borrowing was used for a private purpose.
Does anyone know if there has been any clarification of this issue?
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