Owens88 Posted January 1, 2009 Share Posted January 1, 2009 Hi As I understand it I can offset my mortgage interest against rental income for income tax purposes in France. Does that only apply if the mortgage is french bank ? Given the costs of remortgaging (especially the 2 % start-up tax see http://www.completefrance.com/cs/forums/1515764/ShowPost.aspx ) I was thinking of the consequences of extending our UK mortgage to embrace the french property. Thanks John Link to comment Share on other sites More sharing options...
Panda Posted January 1, 2009 Share Posted January 1, 2009 HelloI can only comment on the way it works for me, the interest on the mortagage is reported against the income from rental for the same property thus reducing tax liability on that income. It can not be applied to other income steams. The 'start-up tax' as you call it does not come into it as far as I know.Panda Link to comment Share on other sites More sharing options...
Owens88 Posted January 1, 2009 Author Share Posted January 1, 2009 Thanks To be clear I am asking whether I could attribute UK interest against a French Holiday Let tax liability - e.g. if I extended my UK mortgage to cover the debt on the French property. All the other stuff I said was really intended to explain why I might go such a tortuous route ! CheerJohn Link to comment Share on other sites More sharing options...
giantpanda Posted January 1, 2009 Share Posted January 1, 2009 Hi!For your French declaration, you can only set off costs relative to the French premises.That applies also to remortgaging, even if the loan is higher than the remaining capital. Losses can be offset for the next 10 years.Yours,giantpanda Link to comment Share on other sites More sharing options...
Owens88 Posted January 1, 2009 Author Share Posted January 1, 2009 HiI did mean only costs related to the French premises - but drawn on a UK bank and secured against a UK property. i.e. I borrow the money in the UK for my french property but use a uk property as the security instead of using the french property (which seems to add 3% in stamp duty just for a re-mortgage - see separate thread).e.g. I understand that the UK tax man recognises interest costs against buy to let income irrespective of how the 'loan or mortgage' is secured - so it can be secured against a property which is not the purpose of the loan.I suspect that I am digging into a black hole here which would only be answered by asking 5 french professsionals and hoping that at least 4 had the same answer.Thanks all anyway. John Link to comment Share on other sites More sharing options...
Owens88 Posted January 11, 2009 Author Share Posted January 11, 2009 [quote user="Owens88"] I am digging into a black hole here which would only be answered by asking 5 french professsionals and hoping that at least 4 had the same answer.John[/quote] p.s. No slur intended to anybody here. We have , unfortunately, found with some other enquiries that French professionals can often disagree even while all proclaiming 'c'est la Loi !' Link to comment Share on other sites More sharing options...
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