I have a limited company. I purchased a buy-to-let flat and it is registered at the Land Registry in my personal name. The purchase price was £150,000 and I financed this with a £70,000 mortgage in my personal name. I paid cash for the difference (£80,000). My intention is to have long-term rental income for my pension. I signed a Trust Deed with the solicitors at the time of purchase of the flat and I am the trustee. The trust deed records that I (as trustee) acknowledge that I hold the property on trust for the grantee (the company) and that all income from the property shall belong to the grantee.  Should the flat be reflected as a fixed asset in the financial statements of the company? Should the £70,000 mortgage be reflected as a long term liability in the financial statements of the company? Should the £80,000 cash deposit be reflected as a shareholder loan in the financial statements of the company? Can I claim the interest on the mortgage as an expense in the company?

From what you have described it seems to me that the property should be reflected as a fixed asset in the financial statements of the company, since your trust deed clearly indicates so. I suggest that the company should show that it owes you £150,000. However, the mortgage is in your own name. The interest you pay your lender therefore cannot be a company expense. I suggest that you draw up a loan agreement and charge your company interest equivalent to the interest you have to pay to your lender. That interest will be allowable for the company. The interest you pay should also be able to be classified as 'allowable interest' - see Box 5 on page 2 of the SA101 self-assessment return form.