Our client is a property investor with a mixed portfolio of commercial and residential property. Debt to value ratio was low and the client sought to buy another commercial property, fully geared.
How we helped our client
Firstly, our Property Tax team had made our client aware of all the tax changes, in this case specifically our client’s issue over less tax-deductible interest on residential property.
The new commercial property allowed us, with the client, to have a detailed conversation with the bank in order to restructure the debt so that it only related to commercial property. In doing so, EQ ensured the client successfully navigated the detailed legislation that exists in this area.
Our client has fully tax-deductible interest costs thereby saving over £6,000 per year in tax.
For more information or to discuss further, please contact the Residential Property Taxperts.