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Is interest on debt tax deductible in the UK?

Is interest on debt tax deductible in the UK?

If the loan was for a business purpose, then generally it is deductable against the income arising from that business.

There are complications on decucting interest on Buy to Let properties where if the mortgage is greater than the value of the property when first let and you have not reinvested the money extracted into buying more property within that taxable pool, then you may have to restrict the amount of interest you can claim.

Also if you work predominantly from home, then you can claim a proportion of the mortgage interest you pay against your business income. You need to make sure that you claim the right amount so that you dont fall foul of CGT rules but your accountant can guide you through this.

Kind regards

David Nicoll
"the accountant with attitude"

It depends upon the use to which the money lent has been put.If for a qualifying business or business asset,the answer is that it is allowable.Equally,against a property from which one receives rent.But not for personal debts or expenditures

On ordinary personal debts. no. Buy to let mortgage interest, yes. In most business transactions, yes.

Interest on buy to let mortgages is the only one I know of....

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