Recycle Your Mortgage Through Selling Shares to Your Spouse

This is one for owners of close companies who have a mortgage but as yet have not involved your spouse in the company’s shareholding structure.

As you can get tax relief on a loan taken out to buy shares in a close company, then you can swap loans about to fit.

Take a loan out to buy shares off spouse.  With proceeds, selling spouse pays down loan that did not previously qualify for tax relief.

Hey presto!  You have swapped a non-qualifying loan for one that now qualifies for tax relief.