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.
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