Mortgage interest refund for small businesses

suejane50_2

I believe that it is possible to claim back a percentage of your mortgage interest if you run a small business from home. Is this correct and how do we go about it?

Sue

minimike2

Not exactly.

You can claim "use of home as office" as an expense on your tax return and therefore not pay tax on it.

You should check with your accountant on how much you can put down. I think I claim about £300 for the year.

foreversummer

Hi

My accountant advised against it as you may be liable for capital gains tax when you sell.

Definitely worth checking with your own accountant though.

Foreversummer

PasturesNew

You will run into trouble if you try to do this and have a dedicated area in your house solely for business use.

You need to speak to your accountant though because there are 2-3 weays this might be achieved, some will be good for you, some bad - and yes, in some instances Capital Gains Tax might apply when you sell the house in the future.

Met_Bobby

If you have a really good accountant with bottle!

1. Take out a business loan which qualifies for tax relief.
2. Raise capital against your home
3. Pay off business loan with said capital
4. Ask accountant to apply the rule that tax relief can be transferred when a loan 'replaces' a qualifying loan.

This gets rid of the capital gains tax issue.

Legitimate but will wind up the local inspector and put you right into the naughty book.