Client has a property business, he has an investor who has made a loan, he will be paying interest on that loan and currently be paying it gross....but should he be deducting tax?
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Foreign lender
Many years ago I recall a case where a property was purchased by a UK individual in the USA funded by a USA mortgage.
UK HMRC said must deduct tax at source on the interest paid to a non-UK lender.
USA lender said no and threatened mortgage foreclosure if tax was deducted.
Spoke to USA embassy - useless.
Eventually resolved when I found a technical error in HMRC's original assessment (assessed under a section referring to partnerships rather than individuals as I recall and too late for HMRC to correct the assessment when I pointed out the tech error).