Tax Relief on remortgaging property for investment

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So I have a query on whether you can claim tax relief on remortgaging your house and then invest this into a limited company.

Client has read about this online somewhere. Any ideas what he may be refering to?

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By Accountant A
25th Jul 2018 13:06

ash428 wrote:

Client has read about this online somewhere. Any ideas what he may be refering to?

If you want to PM me his details, I'll ask him for you.

Thanks (2)
Replying to Accountant A:
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By ash428
25th Jul 2018 13:11

You must not have very much else to do with your time rather than post ridiculous answers.

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By johngroganjga
25th Jul 2018 13:14

Does he mean that he will get tax relief on the interest on the new borrowing?

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Replying to johngroganjga:
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By ash428
25th Jul 2018 13:23

Absolutely. He is under the impression he would receive tax relief on the new borrowing. He has just received a mortgage offer and plans to invest this into start up co. EIS does not apply in this case.

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Replying to ash428:
By johngroganjga
25th Jul 2018 13:52

On the borrowing itself, or on the interest paid on it?

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Replying to johngroganjga:
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By ash428
25th Jul 2018 14:02

The interest as far as I know.

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Replying to ash428:
By johngroganjga
26th Jul 2018 07:47

Then he is probably right then isn’t he - unless he thinks that taking out the borrowing only in order to obtain tax relief on the interest is a good idea. He will be better off just not paying the interest. There has to be a business reason for the company to need the money for the plan to make sense.

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By CazzyT
25th Jul 2018 13:45

I believe you might be referring to interest on a qualifying loans - in which case helpsheet HS340 might assist you.

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