WOULD YOU LIKE TAX RELIEF ON YOUR MORTGAGE INTEREST?

Of course you would and it is possible to effectively achieve this within a family if the circumstances fit.

It can work as follows;

• You have, say, a £100,000 mortgage
• You sell shares in your family company worth £100,000 to your spouse (it also works between civil partners)
• Your spouse borrows to pay for the shares under a commercial loan
• You use the funds to clear your mortgage
• Tax relief is then claimable by your spouse on the commercial loan as it is used to purchase an interest in a close company provided your spouse either (a) owns more than 5% of the issued ordinary share capital or (b) owns some of the share capital and works for the greater part of their time in the management or conduct of the company.
• No capital gains tax is due on the share sale as the sale is between spouses
• Stamp duty is payable at 0.5% on £100,000 = £500

Please talk to us to see if this could work for you by contacting experts@meadesandco.co.uk