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Thu 04 Apr 2010Q&A
Does Section 23 relief stop after 10 years?
Q I am a landlord of a Section 23 property which I bought in 2005 with an interest-only mortgage and no capital has been paid to date. With decreasing rental income and increasing costs, the rent is only covering the interest. I understand Section 23 has to operate for 10 years from purchase otherwise a clawback operates. My question is: does the Section 23 stop after 10 years or continue after that until the full mortgage, both capital and interest, is repaid? Also, if I decide to sell my Section 23 at a loss, does the original Section 23 allowance figure pass on to the purchaser or does a new Section 23 allowance/figure apply based on the reduced price?
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