If the purchase of the UK property is funded by borrowing, the person needs to consider whether relief can be obtained for the interest paid.
Note that for UK tax purposes it is only possible to obtain relief for the interest payment. Any element relating to a capital repayment of the borrowed sum does not attract UK tax relief (Individuals: ITTOIA 2005, ss 33, 272; Companies: CTA 2009, ss 53, 210).
Individuals
UK income tax relief for finance costs is available only where the property is rented or used in the individual's business; essentially the finance costs need to be a business expense to obtain relief.
If the individual lives in the property there is no tax relief for any finance
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Web page updated on 17 Mar 2025 13:16