Question:
Is it possible or allowed to use cash from a personal loan to fund a deposit towards a buy-to-let (BTL) property?
Arthur Weller replies:
It is possible or allowed to use cash from a personal loan to fund a deposit towards a BTL. See HMRC’s Business Income manual at BIM45685. Also, see HMRC’s Property Income manual at PIM2052, where it states: “Similarly, interest payable…on an overdraft is deductible where the asset is used for business purposes.”
