Hi, Before i consult an accountant, i figured someone on here may have the solution to my problem. Due to a somewhat fortunate or unfortunate circumstance, i am able to buy a house i will not be able to live in. It would be stupid it pay for it while i can't live in it so I'm looking to transfer it to the business and rent it out through that. The problem is as follows; I've heard that i can only count interest on the outstanding mortgage as an expense for tax purposes; not the capital repayment. How does this work? Say for example, i have a £40,000 outstanding mortgage @ 7.5% (to keep the numbers small) - and say for example this is £250 interest and £46 capital (ie £296/month total repayment for interest+capital). For the year this would mean (£46/month * 12 months = £552 * 21%lower corp tax =) £115.92p tax on this capital But, can my other allowable expenses "cut in" to this £552 figure (i.e. insurance costs, marketing etc.) to effectively reduce this tax figure? If not, are there anyways to get this figure down (other than directly reducing mortgage etc.) Just wondered if anyone else was in the same boat as me! Thanks for any help!