BTL Mortgage Expenses on shared property

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ChimpMaster replied

16 March 2016, 13:52
Originally posted by BrilloPad View Post

Didn't you ask your accountant first?

Its not just a win for HMRC. Its a win for anyone who wants to get on the housing ladder. No mortgage payments should be offsetable. And there should be a tax on rental profits. 100% would do nicely.

It's good that you don't run a real business then, and have always paid full PAYE on your contracting income. After all, it's only 'fair' to anyone who is a permie and can't be bothered to better themselves by risking a move to contracting.

Anyway this is in Accounting/Legal so let's stick to helpful comments only shall we.
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BrilloPad replied

16 March 2016, 12:53
Originally posted by BiggieBig View Post

Fair to who

not to me

I now have to pay tax on profits that I have not really made since I can't off set the full interest on the payments.

win win for HMRC though

Didn't you ask your accountant first?

Its not just a win for HMRC. Its a win for anyone who wants to get on the housing ladder. No mortgage payments should be offsetable. And there should be a tax on rental profits. 100% would do nicely.
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ChimpMaster replied

16 March 2016, 12:48
Sounds like you bought as Tenants in Common so that you can declare a specified shareholding.

Ask your accountant - assuming he is a real property accountant - about “Declaration of beneficial interests in joint property”, HMRC form 17.
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northernladuk replied

15 March 2016, 21:53
So you've got this problem with only one property?
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BiggieBig replied

15 March 2016, 21:17
Originally posted by northernladuk View Post

Seems fair enough.

Fair to who

not to me

I now have to pay tax on profits that I have not really made since I can't off set the full interest on the payments.

win win for HMRC though
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northernladuk replied

15 March 2016, 20:49
Seems fair enough.
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BiggieBig started a topic BTL Mortgage Expenses on shared property

15 March 2016, 20:38
BTL Mortgage Expenses on shared property

Hi
I have a BTL mortgage on a property with unequal share between myself and my father.
He purchased he's share with Cash and I purchased via Mortgage + deposit hence I have been responsible for all payments.

I have now been advised that any profits and costs (including mortgage) have to be dividend as per share.

Originally I was advised that we were both to be named on the mortgage as per deeds, however I was the main applicant and grantor and ultimately responsible for the payments.

any thoughts ?
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