Year End Tax Review 2007 Contents A word to the wise Employee pensions A matter of trust Pension policies Family tax planning Mr and Mrs Inheritance tax Employee cars and fuel Borrowings and tax Tax-free perks Two jobs = too much NIC? Give generously and save tax Children's savings? Company or trade? Capital gains Business tax Investment limits Should VAT be flat?

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 7% is less than 100% of 5%! 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