Year End Tax Review 2009/2010 Contents Lead articles The year ahead... This year, next year Pension hit Employees Too much NIC NIC and pensions Company cars Tax-free benefits Business - General Time to incorporate? His and hers Family bonus Profit and loss Show me the money Can't pay, won't pay? Turning back the clock Business - VAT Standard VAT or flat VAT? VAT goes down - must come up? European revolution A good start for VAT Happy returns? Investments Top-up savings Rainy day money Capital Gains Gains favoured Splitting gains A place in the country Holiday lets end Families Family fortunes Where there's a Will Credits and debits Piggy banks Still trustworthy? Administration Penalty shoot-out Paperwork, paperwork Pay tax later Opportunity knocks again Charity Give and save Non-Domiciled People Home and away Interest Interesting times

Interesting times Tax relief on home loans is a distant memory. But if you run a company or a business, or if you buy property to rent out, it's possible to enjoy tax relief on interest paid. Although the terms of such "business-related" loans may be different from a domestic mortgage, the tax relief can reduce the cost to 60% of what it would otherwise be. 60% of 8% is less than 100% of 6%! If the rates and terms are the same for two loans, tax relief is a pure advantage. The same goes for paying off borrowings. If you want to reduce the cost of interest payments, look at the net cost rather than the gross - you might want to reduce "private" borrowings even if the rate is lower before you pay off loans on which you get tax relief. Action Point! Review borrowings to see if relief can be obtained