This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. To find out more about cookies on this website and how to delete cookies, see our privacy notice.

Tools which collect anonymous data to enable us to see how visitors use our site and how it performs. We use this to improve our products, services and user experience.


A bit of data which remembers the affiliate who forwarded a user to our site and recognises orders from those who become customers through that affiliate.


Tools that enable essential services and functionality, including identity verification, service continuity and site security.

Enrol now on the free landlord tax strategies course

To enrol in the 7 tax saving strategies email course complete the form below. The first module will be emailed to you immediately.

Enrol now on the free landlord tax strategies course

Thank You!

Free Tax Saving Strategies Course
The seven FREE property tax busting strategies course reveals the secrets of how to legitimately beat the taxman and boost your property profits!
View All Questions

Can I Offset Interest from Our Re-Mortgage?


We wish to raise about £45,000 on two properties that we originally paid cash for 10 years ago, purchase price jointly at £45,000. The money is to be used for the balance on a holiday cottage. 

Can I offset the interest only portion of this mortgage against our other investment property income if we use the holiday cottage for private use only or must we encompass the cottage into our portfolio as a holiday letting?

Arthur Weller Replies:

Since the amount of the £45,000 mortgage does not exceed the amount you paid for the house originally, you are entitled to offset all the interest on the £45,000 mortgage against your gross rental income from all your rental properties. I am assuming that these two properties that originally cost you £45,000 cash are part of your present rental portfolio, i.e. that you actually rent them out. 
Consequently you can use the £45,000 for private purposes and therefore the holiday cottage does not need to be rented out but can be used only privately if you so wish. See page BIM45700,, (example 2) on HMRC Business Income Manual.

Property Tax Insider This sample question and answer is taken from Property Tax Insider, a monthly UK tax saving magazine for landlords and property investors.

The first issue is free so click here to try today!

Got a burning tax question?

Why not submit a tax question to our tax advisors

Ask a Question