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Where Taxpayers and Advisers Meet

Loan Interest

snooper
Posts: 10
Joined: Wed Aug 06, 2008 3:03 pm

Postby snooper » Thu Oct 19, 2006 12:06 am

The Revenue are querying a bank loan I took out to buy my business property. I operate a limited company, but have bought the property in my own name. The bank, however, have arranged the loan in the company's name. I have a letter from the bank admitting this was a mistake, and offering to put it right if needs be. The Revenue have a copy of this letter but are still not satisfied. They want the original loan application and agreement. Where are they going with this? Surely they cannot claim the loan belongs to the company and assess be for benefits etc. The loan was raised and all monies are shown on the completion statemnet. Even the loan repayments are made from a personal account.

King_Maker
Posts: 6538
Joined: Wed Aug 06, 2008 3:22 pm

Postby King_Maker » Thu Oct 19, 2006 1:10 am

I assume you have claimed loan interest relief?

If so, HMRC will be wanting to reverse this (with interest & penalties) on the basis it is a company loan and not yours.

However, HMRC seems to be wrong - if your version is correct.

wamstax
Posts: 1931
Joined: Wed Aug 06, 2008 3:39 pm
Location: Operate Nationally but based in Aberdeen
Contact:

Postby wamstax » Thu Oct 19, 2006 1:49 am

before getting too hung up on the underlying possibilities and results I think we need to know whether the HMRC are enquiring into the company (Para 24 enquiry notice) or into your own liabilities (Section 9A enquiry notice and also what (if anything) has been reflected in the company accounts or records.
but I tend to go along the King_maker route above. Maybe the HMRC Officer is just wanting to be satisfied!!!
bill@wamstaxltd.com
http://www.wamstaxltd.com
regards and hope this helps
http://www.wamstaxltd.com
Operates Nationally with competitive costs
and email and phone contact (mob 07751720507) can be obtained from websites


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