Year End Tax Review 2008 Contents New Year's resolutions Investment limits Borrowings and tax Family tax planning Mr and Mrs Give generously and save tax Jam today, or jam tomorrow? Tax payback - tax credits Bringing it back home Children's pensions? A matter of trust Children's savings? All change for gains Second homes Portfolio gains Capital ideas Tax-free perks Employee pensions and NIC Pension policies Employee cars and fuel Business tax Pay rise for the other half? Company or trade Two jobs = too much NIC Should VAT be flat? VAT and cash Inheritance tax One careful owner

Borrowings and tax Tax relief on loans to buy your own home is a distant memory. But if you run a company or an unincorporated business, or if you intend to buy or improve property to rent out, it is generally possible to enjoy tax relief on interest paid. Although the terms of such "business-related" loans may be different, 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 a domestic mortgage and a "buy-to-let" loan, the tax relief on the buy-to-let is a pure advantage. Action Point! Review borrowings to see if relief can be obtained