I own two properties (property A and property B) in my own name and have a ‘special purpose vehicle’ company. I remortgaged property A and transferred the proceeds to my company as a director's loan. If the company then buys property B from me, are my finance costs for the mortgage on property A tax deductible? 

Arthur replies: 

The finance costs for the mortgage on property A should be fully allowable – under the classification of 'allowable interest'. This states that if an individual borrows money to lend to their trading or property company, the interest they have to pay their lender is eligible for tax relief. Of course, 'allowable interest' has conditions, which you will have to look into.