Mortgage as an expense

bfelton · Postby **bfelton** » Fri May 23, 2003 6:38 am

I'm about to rent my property and I called the inland revenue, the girl on the phone implied to me that my mortgage cannot be cnosidered as an expense on my property.. does this mean that while i will be renting the property for Â£880 per month and my mortgage is Â£850 I am still liable to pay 40% tax on the Â£880 i receive.. surely this is not right... i thought it would be only on the profilt i receive i.e. Â£30... any help would be greatly appreciated.. Thanks

Ben Felton

DF · Postby DF » Fri May 23, 2003 7:59 am

You can deduct the mortgage interest as an expense but not any capital repayment amount.

I am surprised with the answer you got form the InRev!!

bfelton · Postby **bfelton** » Fri May 23, 2003 8:02 am

Thanks alot for that.. sorry to be a bit dim, but bearing in mind that i only took the mortgage out about 8 months ago.. this surely means that most of what i am repaying is interest and therefore deductable as an expense.. right???

DF · Postby DF » Tue May 27, 2003 2:10 am

probably yes. You need to check with the bank and ensure that you are only deducting interest expenses and not capital repayments.

DF