Any sympathy?

27 July 2010

Issue: 4265 / Categories: Forum & Feedback , CTA 2009 , Grant v Watton , Harvey v Williams , ITEPA 2003 , ITTOIA 2005 , P11D , TA 1998 , Williams v Todd , Income Tax

The employee of a bank has a mortgage from his employer to assist in the purchase of buy-to-let properties, but P11D forms show that a large benefit in kind has accrued. Can this be set against the rental liability?

I have owned a couple of buy-to-let properties for five years and took out a mortgage that varied with the Bank of England base rate just before the base rate was reduced to 0.5%.

As an employee of a UK bank having lost on shares held in employee share ownership trusts I felt relieved that my investments were diversified.

My employer has now sent me P11D returns for two years which show a huge benefit in kind on the difference between HMRC’s official rate of interest and the rate that I paid for 2008/09 and 2009/10.

I initially thought that the benefit in tax charge was a ‘tax nothing’ as far as this relates to deduction against my buy-to-let income. I presume that I can claim a deduction for the interest that I pay to my employer against the rental income?

However I then had second...

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Any sympathy?

27 July 2010

I have owned a couple of buy-to-let properties for five years and took out a mortgage that varied with the Bank of England base rate just before the base rate was reduced to 0.5%.

As an employee of a UK bank having lost on shares held in employee share ownership trusts I felt relieved that my investments were diversified.

My employer has now sent me P11D returns for two years which show a huge benefit in kind on the difference between HMRC’s official rate of interest and the rate that I paid for 2008/09 and 2009/10.

However I then had second...

If you or your firm subscribes to Taxation.co.uk, please click the login box below:

If you are not a subscriber but are a registered user or have a free trial, please enter your details in the following boxes:

Subscribe Now...

Alternatively, you can register free of charge to read a limited amount of subscriber content per month.

Once you have registered, you will receive an email directing you back to read this item in full.

Issue:

4265

Categories: Forum & Feedback [1] , CTA 2009 [2] , Grant v Watton [3] , Harvey v Williams [4] , ITEPA 2003 [5] , ITTOIA 2005 [6] , P11D [7] , TA 1998 [8] , Williams v Todd [9] , Income Tax [10]

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