I'm newly self-employed. My wife is taking out a loan to buy a van/lorry for my business. Can I still claim back the interest on the bank loan even if the loan is not in my name? (I have been refused the loan)
I will be paying it back monthly, it will just be coming out of her bank account and in her name
i am a sole trader
Replies (7)
Please login or register to join the discussion.
No, afraid not.
And you know that even if you could, you can't "claim back the interest", don't you? You can only benefit from tax relief.
But if you were to engage an accountant he might be able to point you in the direction of tax-efficiency and you would be able to claim a deduction for his fees. Win-win.
Are you actually borrowing from your wife? Should you set it up that way? Possibly these are questions for your accountant.
Yes, that would work. He pays her interest and claims a tax deduction. She pays tax on the interest and then claims relief under what head?
(She may have no taxable income of course, but one assumes that she does given that she is able to obtain the finance.)
You say your wife is taking out a loan (not has taken out a loan) so presumably you've yet to buy the van.
In which event you'll want the van to be purchased in your name. I assume that will be possible, that is that her taking out a loan means a bank loan, and not that she is buying the van in her name on hire purchase. And if the latter is the case, then as the panel have pointed out you might just benefit for some paid-for bespoke advice.