Mortgage relief on rental income of former principal residence abroad?

Hi, I became a UK resident some years ago, and since then I rented my Principal Residence in my country of origin. I have a first buyer mortgage on it in my country of origin. I do not own any other property, either in the UK or there. Can I claim mortgage (financial) costs on the rent I receive from my Principal Residence abroad? I inspected previously with HMRC if I could claim PRR (Principal Residence Relief) when I sell it, and I was told I cannot claim it from the moment I came to the UK, unless I spent 90 days there (not the case). If I cannot claim PRR, I thought I am the equivalent of a residential landlord and so I can claim financial costs on the rent for that period (between when I moved to the UK up to now or the time of disposal). Does it make sense? Thanks

Hi ,

Thank you for your question, with regards to Private Residence Relief on a property overseas, there are several conditions which need to be met in order for this to qualify, please see guidance held at : Capital Gains Manual     to check if you meet these rules  . For residential finance costs, please see guidance available at : PIM4702 - Rent from property outside the UK: Income Tax (IT) which advises- The profits or losses (from properties outside of the UK) are computed in the same way as the profits or loss of a trade, just like those of a UK rental business. The other parts of the Property Income Manual generally apply to receipts and expenses of properties outside the UK as well as those within the UK unless the taxpayer claims the remittance basis for overseas income. Therefore if you pay tax on this income in the UK you can claim residential finance costs, please see guidance available at : Tax relief for residential landlords: how it's worked out for further information on residential finance costs . Thank you .