HS340 - Loan tax relief

Hi, I understand that with HS340 you can offset interest of a loan taken to lend to a business against personal tax. My question is based on chronology. I have a mortgage which has been in place for a few years. I have received inheritance in the last 6 months. I am about to loan money to a business I own 50%. Whilst I took the mortgage before I had the inheritance, the initial plan was to use the inheritance to pay off my mortgage. Instead I decided to loan the inheritance funds to a business and keep the mortgage. Is the personal mortgage interest deductible on the basis I would not have it if I had not loaned to the business. Mark

Hi,
The interest on the personal mortgage is not deductible as it does not meet the wholly & exclusively test. BIM45665 - Specific deductions - interest: Must be paid wholly and exclusively for business purposes.
The purpose of the mortgage itself has not changed and is still being used to finance the individuals personal property, not to finance assets for use in the business.
Thank you.

Hi, My question is slightly different. I have taken out a mortgage and gave the money to my company (I meet the criteria of having a sufficient interest). Although nothing on the mortgage application says specifically that I will give it to the company the paper trail of the money (bank statements, solicitors bills, SDLT payments and land registry forms) show a clear and quick movement of money to the direct benefit of the company. Would this be sufficient to claim this relief? Thanks.