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Where Taxpayers and Advisers Meet

Offsetting 1 loan repayment against investment

flydigital
Posts: 13
Joined: Fri Nov 28, 2014 2:20 pm

Offsetting 1 loan repayment against investment

Postby flydigital » Tue Jan 22, 2019 12:35 pm

I have a flexible mortgage of £150,000 at 1.74% interest.
I have paid off most of it but now wish to drawdown £50,000 from the loan and invest it elsewhere at 5% for a few years.

I will earn £2,500 a year from the 5% loan. But I will be paying £870 in interest for the mortgage repayment 1.74% of £50,000.

So this mean I actually only earn £2500-£870 = £1630

For tex purposes, am I allowed to offset the £870 and declare that I earned only £1630 and not the full £2500?

Thanks for any advice.

AGoodman
Posts: 827
Joined: Fri May 16, 2014 3:47 pm

Re: Offsetting 1 loan repayment against investment

Postby AGoodman » Wed Jan 23, 2019 1:54 pm

Almost certainly not. There is no deduction against investment income.

flydigital
Posts: 13
Joined: Fri Nov 28, 2014 2:20 pm

Re: Offsetting 1 loan repayment against investment

Postby flydigital » Thu Jan 24, 2019 12:34 pm

Oh well!
Thanks for the information!


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