The use of parts of residential properties for business purposes is growing and becoming more and more popular, particularly for small businesses. However, many business are not taking advantage of the mortgage interest relief on offer.
The interest relief comes into effect when a loan is taken out to acquire business and residential parts of a property. Interest on the loan to acquire the residential part qualifies for mortgage interest relief and interest on the business part can be allowed as a business deduction.
The business part has to be set aside for business purposes and the relief is calculated on a pro rata basis to the non business part of the property.
On a £200,000.00 mortgage, it could be possible to obtain £600.00 per annum relief.
It could be possible to back date a claim 6 years, if relief has not previously been claimed.
The business use of gas and electricity may also be entitled to relief.
For more detailed information and an explanation, visit “Specific deductions: interest: mortgage relief: mixed use of premises” on: www.hmrc.gov.uk/manuals/bimmanual/BIM45745.htm
UK Businesses: Are you getting Mortgage Interest Relief on your Home Office? - To learn more about this author, visit Robin Carlyle's Website.
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Robin Carlyle
(Visit Robin's Website)
I am the Founder and Managing Director of
www.fighty
ourcorner.com which is an online
business resource for business people who
have issues with Employment Law, Health &
Safety, Business Recovery/liquidation,
vat, tax, business finance and a number of
other subjects on the website.
The website provides reactive help and
support through a UK wide team of
specialist advisors on a one to one basis,
talking to "real" people, in confidence,
with a free initial consultation.
Prior to fightyourcorner, my extensive
entrepreneurial experience includes
setting up and running several
construction and offshore related
businesses in the UK.
I am also a past director of the Edinburgh
Chamber of Commerce.
For further information, please email: robincarlyle@fightyourcorner.com
or visit:www.fighty
ourcorner.com
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