Deductability of interest - loan in wife name, asset in husbands name

Hello PC Tax gurus,

I am seeking confirmation or otherwise if the proposed straightforward scenario is acceptable:

- I have an undrawn loan in my wifes name only.
- I would like to invest this money in the sharemarket into holdings that would be in my name only.

Can I claim a deduction for the interest incurred? I am assuming this should be ok, from what I have been able to find it is effectively a loan from my wife to me and I am paying the interest at the bank rate back to her. Interest would be paid from our joint cash account. Am I missing anything?

Any advice appreciated.
Many thanks

 

She would need to lend you the money.

 

She will, I meet her servicing criteria

Seriously though, will a simple 1 page loan agreement suffice then, signed by us both and retained with tax records?

Thanks Terry

 

it probably would, but I cannot say for sure

 

Depends what you buy. Buy shares for dividends (yes). Buy shares to trade for profit etc ( = No.)

Look at marginal tax rates too.