Do you have business or investment property loans?
Did you know you may be entitled to claim some of next year’s interest in this year’s tax return, depending on your tax position. This option may be suitable for individual investors or small businesses (who are STS taxpayers) with surplus cash flow in the current year, with funds being used to pay the following year’s financing costs.

Another benefit of this is that many lenders offer discounts on the interest rate for clients who choose to pay their interest in advance. Interest only in advance is a repayment option that offers fixed rate Investment Property Loan customers an interest rate discount for paying 1 to 5 years worth of interest up-front.

Be quick if you want to look at this option for 2016 and seek independent tax advice to see if this is an option for you.

Do you need to borrow in the next financial year?
From 1 January 2011 Responsible Lending Obligations were set for businesses engaging in consumer credit activities (including banks, credit unions, finance companies, brokers, and pay-day lenders) which saw lenders adjusting their policies to ensure loans were not only “not unsuitable” to a clients need but the debt was also affordable to the client. In today’s finance arena the need to demonstrate the ability to meet your loan commitments is essential and so when setting your tax strategy for the future, think about your borrowing requirements and talk with your accountant before finalising your figures. Give consideration as what may save you tax might restrict you in other areas.

Lynne Sturgess, Finance Specialist
Precision Loans — finance designed for you