colinbeckenham Erridge
Joined: 8/25/2023
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Interest deductible on holiday let
I bought a property in Scotland in 2008 for my mother. She died two year later and it has been used as a short term holiday let ever since. I raised the capital to buy it with a further advance on my mortgage secured on my own home. The holiday let is registered for business rates (currently small business relief). Can I set the interest on the loan I took out to purchase the holiday let against profits, even if it is secured on another property? (my current home). I haven't been claiming finance interest to date but the cost of the loan has tripled and if I can, I'd like to do do so. If it is a legitimate deduction, can it be back-dated, and by how many years?