Barclay’s mortgage deals offers £500 cash back. With cash back option, the interest rate is higher.
HMRC’s manual PIM2074 says to consider three aspects interest relief, CGT and IT. Looks non-taxable from CGT and IT points of view but the interest relief point got me slightly confused.
‘interest relief: where the scheme provides for a discount on the interest due on the loan, interest relief is limited to the net amount paid’
As taking the cashback provides a higher interest rate is this therefore a negative discount and the cashback should be netted off against the mortgage interest?
Replies (1)
Please login or register to join the discussion.
Well theres no discount on the interest so I don't see where interest relief comes in to it.