If I took a residential mortgage against my home property in order to specifically and solely use the capital to purchase a buy-to-let property, would this mortgage interest be allowed by HMRC's rules to offset against the rental income from the purchased property?

Arthur Weller replies:
Taking into account that the rules for residential landlords claiming tax relief for the interest they are paying have changed as from April 2017, the answer to your question is yes, you can offset the interest you are paying on this mortgage against the rental income you are receiving from the purchased property. See www.gov.uk/hmrc-internalmanuals/business-income-manual/bim45685.