Hello,

I was wondering if there are any tax (or other) benefits over the interests you pay on the mortgage of your residential property or your rental property?

Say, for instance, that I have a £150,000 mortgage and I pay £791.76 per month (@ 4% interest).

From this money I pay £500 just to cover interest and the remaining £291.76 covers the principal of the loan.

Can I deduct from my yearly income £500 as a loss if:

1. I live in the property?
2. I rent the property?

Thanks a lot,

Fernando

Obviously, I was taking on a monthly bases,

In this scenario, after a year, my interest payment were: £5,935.10.

Cheers,

F

So far as I understand it, if the property is your own home, then there is no tax relief available, having been abolished in the UK.

However, if you are a landlord then I believe any costs incurred in managing the property may be tax deductible - however, it can be quite a complex field, so you definitely need the advice of an account on this.

Thanks Brian!

Will check it out!

Cheers,

Fernando