We lived in our previous property for over 14 years and re-mortgaged this property for £112,000 in 2010. We then bought our new home for £154,055, and this was paid off using my wife's lump-sum pension and her redundancy payment. We then rented out the re-mortgaged property for two and a half years and we registered as a business, and engaged an accountant so that my wife's tax allowance would be used to offset any tax that might have been applied, although my wife had a little earlier been made redundant, and then became an early retirement pensioner. We have now both retired on company pensions. The interest only mortgage was paid off using my lump sum pension pot. The total interest was £8,605.91. I am wondering if we could claim any of the interest back?

Arthur Weller replies. 

It is not clear from the question what you mean when you write about claiming back the interest of £8,605.91. Possibly you mean that you didn't claim the interest paid as an allowable expense to offset against the rental income received and declared, and as a result, you paid too much income tax on the rental income. If so, you can make an overpayment relief claim, going back four years: see www.gov.uk/hmrc-internal-manuals/self-assessment-claims-manual/sacm12000,  in particular, www.gov.uk/hmrc-internal-manuals/self-assessment-claims-manual/sacm12150.