This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. To find out more about cookies on this website and how to delete cookies, see our Cookie Policy.
Analytics

Tools which collect anonymous data to enable us to see how visitors use our site and how it performs. We use this to improve our products, services and user experience.

Essential

Tools that enable essential services and functionality, including identity verification, service continuity and site security.

Where Taxpayers and Advisers Meet

Interest relief on Directors Loan to own LTD *pls help*

ltd101
Posts:47
Joined:Sat Feb 16, 2013 9:54 am
Interest relief on Directors Loan to own LTD *pls help*

Postby ltd101 » Mon Nov 28, 2016 9:43 pm

Husband/wife have large personal mortgage on primary residence of £1mil mortgage outstanding on interest only at 5% interest.

Husband/wife own 1 share each in property investment LTD which own 5 properties unencumbered. All purchases were funded by DLA which owes both directors 500k each (total of £1mil funded by their personal mortgages).

Can you confirm that the 5% interest on the personal mortgage benefits from interest relief (at the individual's marginal rate?)

eg assuming both are 45% tax payers then of the £50,000 personal mortgage, 45% of this (£22.5k) should be claimed via their personal tax return?

is this the relevant link that proves this?
https://www.gov.uk/government/uploads/s ... /hs340.pdf

Return to “Property Taxation”