This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. To find out more about cookies on this website and how to delete cookies, see our privacy notice.
Analytics

Tools which collect anonymous data to enable us to see how visitors use our site and how it performs. We use this to improve our products, services and user experience.

Marketing

A bit of data which remembers the affiliate who forwarded a user to our site and recognises orders from those who become customers through that affiliate.

Essential

Tools that enable essential services and functionality, including identity verification, service continuity and site security.

Enrol now on the free landlord tax strategies course


To enrol in the 7 tax saving strategies email course complete the form below. The first module will be emailed to you immediately.

Enrol now on the free landlord tax strategies course

Thank You!

Free Tax Saving Strategies Course
The seven FREE property tax busting strategies course reveals the secrets of how to legitimately beat the taxman and boost your property profits!
View All Questions

Can I offset interest repayments when borrowing money from a relative?

Question I intend to borrow 40k from my father to help fund the purchase of a BTL property. I intend to pay him a fixed interest rate of approx. 6 %.

Is this interest allowable against rental income and what documentation may the revenue require?

Ian Says:

The interest is allowable against the rental income. Your father would have to report the interest on his Tax Return and pay interest on it.

A simple loan agreement between you would be sufficient evidence together with a clear record of the amount being transferred into your account from his and clear records of the interest being paid.

For the avoidance of doubt, set up a standing order for the interest payments and ensure the agreement states the terms of the loan and the repayment date or terms for repayment of the capital.

Case Study

Landlord Tax Secrets Get our SEVEN FREE Landlord Tax Saving Strategies - Guaranteed To Slash Your Property Tax Bills!
Click here for more.

Got a burning tax question?

Why not submit a tax question to our tax advisors

Ask a Question