Q. I have four rental properties, and I have recently remortgaged one property to provide funds for my son’s education. Can I set the professional fees and charges connected with this re-mortgage against my letting income?
A. Normally fees connected with obtaining finance for a business (including a lettings business) are allowable against the profits of that business, but in this case you didn’t use the additional funds for the purposes of the business, but extracted them for your own use. Therefore the fees and charges connected with the new mortgage can’t be set against your letting income.
If you would like any further information, please do not hesitate to contact Southside Accountants Wimbledon.