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Jaded
26-01-2009, 16:19 PM
1. I have a BTL mortgage on a interest only basis.In completing my tax return how do I note the interest on my SA form? Given that I am only paying the interest and not the capital I am unsure how to work this out?
2. Where do i place my expenses relating to mortgage payments. Is this entered in the other expenses box or is the legal costs box?

Sorry of this seems like a really obvious questions. I am still trying to find my way around SA forms and taxation requirements. The online HRMC guides don't seem to say much about mortgage payments only mortgage interest etc...


Jaded
King_Maker
27-01-2009, 07:20 AM
Was the property rented out during the year ended 5 April 2008?

If not, there is nothing to include in your Tax Return for 2007-08.

If so, you need the supplementary Land Property pages. If the rent is less than £15,000, only total expenses need be shown rather than itemised ones.
gojo
27-01-2009, 20:11 PM
what other expenses do you mean?

I don't think costs associated with setting up a mortgage are 'offsetable'

If you're only paying the interest then the amount you put in the interest box is everything you've paid over the year.
MR M
27-01-2009, 20:27 PM
I don't think costs associated with setting up a mortgage are 'offsetable'

They are according to my post here (http://www.landlordzone.co.uk/forums/showthread.php?t=16323)
Jaded
28-01-2009, 16:34 PM
Was the property rented out during the year ended 5 April 2008?

If not, there is nothing to include in your Tax Return for 2007-08.

If so, you need the supplementary Land Property pages. If the rent is less than £15,000, only total expenses need be shown rather than itemised ones.
Yes, the property was rented during this period. Also, the rental income is less than 15,000 so I know that I don't need to itemise, however I am still uncertain as to how to include mortgage interest. Do I just include the entire mortgage interest paid for the period? so for example if my interest payments for the period 2007-2008 is 6,000 pounds (bearing in mind that this is an interest only mortgage) am I then do include the entire 6,000 along with other expenses?
Hope that makes sense

Jaded
King_Maker
28-01-2009, 17:27 PM
Yes, the full interest is claimable (assuming you did not live in it yourself during that time).

Why would not the full amount of interest be claimable?
Jaded
11-02-2009, 21:08 PM
Belated thank you for your reply.