Originally posted by titan
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It may well be that you can take a higher loan and pay the HMRC going rate of interest and still come out on top, as the interest becomes company profit but it really depends on how much interest you pay on your mortgage and the personal tax cost of extracting the interest (after corporation tax) paid to YourCo.
What you need to do would be to calculate the true interest rate by accounting for corporation tax and your marginal rate of income tax. For arguments sake, if you are a higher rate payer, then for every £10 of interest you pay YourCo, it's a net profit of £8 after CT, and if you took that as a dividend, you'd pay £2 in dividend tax, leaving you with £6 cashback on your interest payment.
Stick with the £10k limit and save yourself the faff I say unless it's really going to save you significant money.
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