Offset Mortgages

[northernladuk]

so the only way they'd know is if they were told be the person benefiting...hmmm

look I know it's what we all think is against the rules but we also all know the rules are not always cut and dry.

I'll be watching how this one develops intently as I too would be very very interested in such a scheme

Evading paying tax is pretty cut and dry IMO

[THEPUMA]

There is no BIK if done properly. Whether or not the lender would allow it if they knew what was going on is a different matter but from a tax perspective it can be done without tax consequences if structured correctly.

Puma

[Alan @ BroomeAffinity]

so the only way they'd know is if they were told be the person benefiting...hmmm

I don't want to sign all sanctimonious here but its against the rules so you shouldn't do it. If you had "fun" with farmyard animals it wouldn't make it right just because you didn't tell the farmer.

[eek]

Evading paying tax is pretty cut and dry IMO

How would you be evading tax?

[northernladuk]

How would you be evading tax?

so the only way they'd know is if they were told be the person benefiting...hmmm

This would insinuate that the person benefiting may not tell them. Not telling them would mean you evading tax if due.

[Coalman]

There is no BIK if done properly. Whether or not the lender would allow it if they knew what was going on is a different matter but from a tax perspective it can be done without tax consequences if structured correctly.

Puma

Could you explain further - this sounds interesting.

[eek]

This would insinuate that the person benefiting may not tell them. Not telling them would mean you evading tax if due.

You really need to understand how the inland revenue treat an offset mortgage before talking about these things.

[northernladuk]

You really need to understand how the inland revenue treat an offset mortgage before talking about these things.

I probably do you are right. I read what you write and that was a comment about them only knowing if you tell them. That seems pretty generic and clear in it's insinutation, offset mortgages, BIK, dodgy expenses etc. Don't tell them then they don't know which isn't clever. It appeared to me that you saw an option of not declaring something when you are required to do so which was the basis of my responses. My apologies if I have misread your response

[DeludedAussie]

Advocate, its genuinely not me.

Olly, its the Clydesdale Bank but I suspect that it may be a ill-advised (and therefore ill-advising) adviser that isn't grasping the legal difference between company and person. I know you can offset sole trader accounts for example and I think that the adviser is perhaps confusing this.

Is clyseldale still doing this then? Did you sign up to that? I had a good look and could not find

[DigitalUser]

Thread update

It appears that a mortgage provider does allow company funds to be offset - see Offset Mortgage | Commercial Lending | Norwich and Peterborough Building Society for more details. Having had a quick look at the application form no restriction appears to be placed on Ltds (which would interest a lot of people here) and assuming you have a decent set of records (>2/3 years) then you might be onto a winner.

Edit - almost certainly cannot be applied to personal purchases.