I have read the Tax Secrets book but need reassurance, I intend to buy a flat with some equity in my own house, so my idea is open up a new bank account, transfer the full £75k from my current account mortgage into the new account to buy the flat then do all my transactions from the new account. Can I then claim the full tax relief on the £75k because I can clearly show the money transferring from the current mortgage to the new account and then going out but I would have to claim the proportion of my overall interest from my current account mortgage in relation to the £75k if you see what I mean Thanks in hope Steve

I can say with confidence this is entirely valid - I am doing it myself. I posted a question a while back with a similar but more specific question and had a positive response (including from the Inland Revenue!). Of course, I can't locate the thread now - doh!

Thanks Alex, I will try to find it Steve

Hello Alex I have read your comments with great interest and they have given me an idea I had not thought about. I am buying a buy to let in Mile End London but the lender will not lend the full amount I need so the brokers need a higher deposit which i will need to take from the equity in my house. So i will be financing partly through buy to let mortgage and partly through residenital. In respect of the one new current account, do both the residential mortgage and the buy to let mortgage need to be paid into that account or just the residential as i think the solicitor on the buy to let will have to release the money directly to the buyer which will be difficult for me to place the funds into the one new current account. I would welcome your comment and if you think to work it must go into one current account i will need to see what i can do. Many thanks Angelo

I think using the one current account is just one of many ways in which you can give evidence of a CLEAR AUDIT TRAIL - that is the key to getting the tax relief, you have to show a Clear Audit Trail for the transactions, ie where the money came from and what you used it for. If you use just one current account it makes the Trail easier to prove but it is not the only way. Just keep records of all the transactions and transfers of money and you have all you need to claim the relief.