Tax relief on mortgage interest - question

Hello, my wife and I are remortgaging £300k from our residential mortgage (in our personal names), and putting those funds in to our buy-to-let LTD company's bank. That is effectively a director's loan. With that cash, the company will purchase a buy-to-let property to obtain rental income. We're doing it this way as a mortgage in the company's name is prohibitively expensive as it is new with no trading history. Using sample figures, let's say: - rental income to the company is £20k a year - personal mortgage is £15k a year (£10k interest + £5k capital repayment) Can I consider the £10k mortgage interest as an expense, i.e. claim tax relief against the rental income? I appreciate the mortgage is in our personal names, not the company's name, however we can prove it is being solely used to fund the purchase of the property.

Hi,
 

I cannot give definitive answer as we do not give tax planning advise, you may need to speak to a financial/tax advisor.   I believe because you are paying a personal mortgage, this would potentially be treated as a benefit in kind or directors renumeration. So, you may be able to count it as an expense but will have to personal tax on it. Any profit made by the company may be subject to corporation tax.   You may also want to speak with Pay as you earn, and self-assessment to see their view point on the matter. Thank you  .