I have an interesting scenario that I cannot find a downside to.
H & W both work in company. W re-mortgages the house to puchase H's shares. W is then entitled to tax relief on the loan interest. H then pays off the original mortgage (not the re-mortgaged part). The result is tax relief on the loan equivalent to the mortgage.
I've looked through HMRC's SAIM manual and ITA2007 and feel like there should be anti-avoidance but cannot find any.
Any opinions would be appreciated.