Buy to let mortgage vs director's loan for corporation tax purposes.

[gisp]

Hi all
I seem to remember from long time ago that if a company takes a BTL mortgage both capital and interest repayment are tax deductible.
Also I remember that if a it's a director's loan to company only the interest is tax deductible. The capital must be repaid back from the taxed profit.

are those 2 above true?
if so, why would they be treated differently?

[northernladuk]

Have you asked an accountant rather than a bunch of contractors?

Bearing in mind you've got a BTL via an SPV it seems wouldn't you be in a better place to answer this than most?

https://forums.contractoruk.com/acco...ml#post2983418

And possibly because directors loans are treated differently to mortgages?

[ChimpMaster]

Hi all
I seem to remember from long time ago that if a company takes a BTL mortgage both capital and interest repayment are tax deductible.
Also I remember that if a it's a director's loan to company only the interest is tax deductible. The capital must be repaid back from the taxed profit.

are those 2 above true?
if so, why would they be treated differently?

That bit is wrong. It's always just the interest that is tax deductible, if the property and mortgage is within a SPV (Ltd Co).