Husband & wife buy house and sizeable area of land and finance with a mortgage.
Husband runs a business on the land, after aportioning the mortgage between the area of land he utilises is he allowed to claim 100% of the apportioned mortgage interest as it is for business use or would it be restricted because his wife actually owns half of the land.
In future the obvious answer would be for the wife to gift him the land as this would also be advantageous for CGT purposes but I am wondering whether in the meantime I am OK to allow the full apportionment of the mortgage interest against his trading income.
Not too confident but living in hope....
Replies (6)
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I believe full relief ought to be due
It is an ancient Tax bulletin, but see Tax Bulletin Issue 2 - HERE This would suggest that relief may be due in full
Apportioning
Have you apportioned the mortgage interest onby area or value. It is only the portion of the mortgage that equates to the value of the land used W & E for the business. Regards Peter