Max "Tax free" div come April 6th

[Scrag Meister]

Thanks Martin and Martin.

Will have a think about the suggestions.

ContraTax? Mainly tax planning for rebels in Nicaragua?

[ContrataxLtd]

Thanks Martin and Martin.

Will have a think about the suggestions.

ContraTax? Mainly tax planning for rebels in Nicaragua?

No problem Scrag!

Tax planning for rebels in Nicaragua, now that's a gap in the market for sure! Actually, I think I'll stick to contractor accounting.

Martin
Contratax Ltd

[ASB]

You might want to take a read of the following BIM45700 - Specific deductions - interest: Withdrawal of capital from a business and in particular example 2.

By your logic, you are implying that if you purchase a rental property outright for cash i.e. LTV of 0% you can never take out a mortgage on it and get a deduction for interest payments which is clearly wrong.

The LTV when purchased is irrelevant, you need to be looking at the capital account of the owner when first made available to rent. In essence you can remortgage up to the market value when first rented and still receive a deduction for interest payments.

Hope this clarifies things for you.

Martin
Contratax Ltd

Of course the loan doesnt have to be secured on the rental property either. It can come from anywhere, but needs a paper trail.

restructuring finances on the residential property can prove beneficial to gain tax relief and a lower rate compared with btl mortgage.

[northernladuk]

No problem Scrag!

Tax planning for rebels in Nicaragua, now that's a gap in the market for sure! Actually, I think I'll stick to contractor accounting.

Martin
Contratax Ltd

Judging by the posts here the rebels probably have a better grasp on their finances than most contractors.

[Martin at NixonWilliams]

The LTV when purchased is irrelevant, you need to be looking at the capital account of the owner when first made available to rent.

Apologies, rushed post (now edited), thank you anyway for the needless explanation.

In essence you can remortgage up to the market value when first rented and still receive a deduction for interest payments.

I doubt this is possible unless the market value of the property has increased significantly (at least 33.33%) as a BTL mortgage usually requires at least 75% LTV.

[eek]

Apologies, rushed post (now edited), thank you anyway for the needless explanation.



I doubt this is possible unless the market value of the property has increased significantly (at least 33.33%) as a BTL mortgage usually requires at least 75% LTV.

you can if you increased your current mortgage for the deposit....