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Interest relief: Shifting sands

By Alan Pink, October 2020

Alan Pink looks at the (still) vexed question of relief for interest on buy-to-let loans following refinancing. 

The UK notoriously has one of the most complicated tax systems in the world, and this certainly isn’t helped by the way HMRC administers it on some occasions.   

I am thinking here about the question of whether you get full interest relief (ignoring, for the moment, the ‘Osborne tax’ restriction on relief for higher rate purposes) if you take out a loan by way of refinancing your property portfolio.   

On the face of it, you might think that a loan secured against your let property should give rise to interest which is wholly allowable for tax purposes; after all, it’s part of your letting business, and one of the expenses that goes through your letting profit and loss account.   

But that would be far too

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