Tax Question

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    Tax Question

    Hello,

    I am in the process of agreeing my Lease Extension which is £6K. The Bank will give me further borrowing for this sum to run along side my mortgage on Int only basis. From speaking with the Inland Rev...it appears that I can offset the int against my Tax. I am currently a high rate tax payer.

    My Rental property takes £8400 per year. My question is, is it worth me just paying for this lease ext from my own personal cash or taking the bank loan and offsetting the int element which works out to roughly £500 per year ?.

    Appreciate any help on this.....

    thanks Ian

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