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Old 13.10.2020, 17:55
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Re: Declaring Uk home for tax benefits

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Thanks Farman. Was hoping you would reply as you seem to know your stuff

I know the mortgage interest (not the repayment) is deductible. But don’t you also get charged a rent in benefit and therefore if owning a property which is heavily mortgaged does this normally reduce your tax liability or increase it
For properties in CH yes, foreign properties no.
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My wife owns a leasehold flat in London, and we are expecting a very large service charge next year - around 50,000 (substantial structural works).

Would that be tax deductible? (Are service charges in general tax deductible?).

FWIW she rents it out for around 25,000 a year. I also own a flat in London that I rent out for about 15,000 a year.
I think structural works would be deducted from eventual CGT.
Repainting Stucco etc would be a normal repair so deductible against rental income for tax purposes even in the UK where interest deduction is limited. All costs such as agents fees, insurance etc should also be deductible against rental income
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