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Posted Wed, 22 Nov 2023 17:20:45 GMT by
I took out a mortgage to buy my flat. I now wish to let it to tenants. The mortgage is actually secured on my main residence. Can I use that mortgage interest to obtain a tax credit against tenant income from my flat?
Posted Mon, 27 Nov 2023 16:57:15 GMT by HMRC Admin 19 Response
Hi,

Provided the loan/mortgage was obtained to buy a specific business asset, the rented flat, the interest paid on the loan can be claimed. The emphasis being on the purpose of the loan rather than how the loan was secured. You can see guidance here:

BIM45650 - Specific deductions - interest

Thank you.

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