Hi,
As your question is specific to your personal circumstances you will need to contact our Self Assessment team to explain your situation in full as some clarification would be needed to provide you with an answer.
Self Assessment: general enquiries
The following guidance advises in addition to these restrictions, the normal property business rules apply:
PIM2052 - Deductions: interest: overview
See the guidance below, including the “wholly and exclusively” rule and the rules governing the timing of relief.
PIM1900 - Deductions
PIM1100 - Use of trading income rules
A customer cannot, for example, deduct interest on a private loan, such as a loan used to buy their private residence. Where part of the customer’s own residence is let see the guidance here:
PIM2100 - Deductions: main types of expense: expenses for own home
Similarly, the interest on a loan or overdraft may not be allowable, or only part may be allowable, where the customer, for example, uses the borrowing:
- to buy non-property business investments (which may be shown in the balance sheet as assets),
- to buy private assets or assets for their family,
- for the provision of private funds to be taken out from the property business.
Thank you.
