Scootershere Posted October 19, 2012 Report Share Posted October 19, 2012 Hello,If i were to refinance a buy-to-let mortgage, to use funds to buy another buy-to-let, am i liable to any taxes if the valuation is higher than what i originally paid the property for? Link to comment Share on other sites More sharing options...
Richlist Posted October 19, 2012 Report Share Posted October 19, 2012 No. Any potential capital gains tax liability is only due when you sell the property, as you are not selling it ..... there is no tax liability. HOWEVER....if you raise a loan for more than the original purchase price not all of the mortgage interest payments can be offset against tax.e.g ....say you buy a property originally for 100K with a £50K mortgage. After 10 years the property is worth 200k and you remortgage taking a 150K loan. You can only offset two thirds (66.6%) of the interest payments against income tax. Link to comment Share on other sites More sharing options...
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