Antjac Posted October 9, 2008 Report Share Posted October 9, 2008 Can anyone help me with the following:- I purchased my home in 1992, lived there till 1999 got married, kept the house to rent out, had a small mortgage on it. Purchased my then, new residential property, with my wife, started a family, etc, etc. In 2005, we sold this 2nd house (residential) to move to a larger house, so decided to re-mortgage the original now, rented house, to release some equity, paying off the original mortgage, with a buy-to-let mortgage, in order to help us with the purchase of our new home. I'm now being asked by HM Customs, all sorts of questions regarding this move. My burning question is; is the equity released on the buy-to-let propery taxable when used to buy your main residential home ? As I am now off-setting my tax liability on the buy-to-let. Is this something they need to know, or are they just checking I'm not money laundering. To make matters possibly worse, the buy-to-let has always been in my name, where as both the residential properties have been in both our names (Wife). There must be a million people out there who've done this and are in the same position. Any information will be greatly appreciated. (Apart from go see an accountant) Many thanks. Jack. Link to comment Share on other sites More sharing options...
Trenners Posted October 10, 2008 Report Share Posted October 10, 2008 Hi Antjac, Not a huge number of responses so far ..... because the best advice is "go see an accountant". I know they will charge you a fee ..... but they will almost certainly save you more than they cost you .... and with the Inland Revenue asking you lots of questions .... and with questions about who owns what etc etc etc ...... it would be foolhardy NOT to go and see an accountant. Even if you do get some free advice from this forum ..... it is not going to be specific to your situation ....... for that you need an accountant! Mark Link to comment Share on other sites More sharing options...
Guest trebor69trebor Posted October 12, 2008 Report Share Posted October 12, 2008 If your in the property buisness then the first thing you need to do is suround your self with very good people and pay then well it will save you a fortune in the long run. cheers trebor. Link to comment Share on other sites More sharing options...
plym77 Posted October 28, 2008 Report Share Posted October 28, 2008 Hi My apologies for my delay in replying. Things have been a bit hectic in the financial field of recent and I haven't had chance to check in to the site for a little while. Jack, I am a chartered tax adviser. In basic terms it may be possible to claim an element of your increase loan secured against your rental property income. The level of loan interest allowable will depend on a few facts, not least value at first let. I should say that it may be worth you paying a fee to get this looked at properly to ensure that the right advice is followed and paperwork filed - particularly if HMRC are asking questions. It would pay to have an advisor who is experienced in this field to make sure that all angles are covered. The other question to ask is whether the profits made are best solely in you name anyway. Are you a higher rate tax payer and your wife note? You could consider looking at this in more detail - you dont necessarily have to gift a larg share or capital to reduce your liability significantly, again, depending on the figures. If you are looking for specific tax advice, feel free to email me and we can go from there. In the meantime I hope this has helped Kind regards Sherena Link to comment Share on other sites More sharing options...
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