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Tax relief for interest on loans to buy property

Companies who take out loans (either mortgages or commercial loans) to fund property purchases need to consider the tax relief available.

If the property is for use in the business, and the expense is incurred wholly and exclusively for the purpose of the trade, then the interest paid on the loan in respect of it, will be classified as a business expense, and is therefore fully deductible against income.

In terms of tax relief for individuals.

As a result of the new restriction on tax relief for individual landlords, many are considering setting up their own limited company to try and reduce the impact of the new restriction. It is important to note that this transfer will count as a sale, and therefore Capital Gains Tax may be payable as a result.

Other Resources

Stamp Duty Other Transfers For Land and Property

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Stamp Duty on Residential and Commercial Property

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