Question:
I own a flat which I let out to third party tenants. I took out a specific loan to purchase the flat which is completely separate from the loan I have on the property that I live in. Please can you confirm that the interest payments can be used in full to offset the rental income in my annual tax calculation?
Arthur Weller replies:
The interest on the specific loan you to took out to purchase the flat which you let out is an allowable expense and the full amounts can be used to offset the rental income. See www.hmrc.gov.uk/manuals/pimmanual/PIM2105.htm.
