Use of offset account and tax implications

Would like the thoughts of tax savvy investors !

I have 3 loans - 2 of them are IP loans , the new one is an equity release (from one of the IPs) and a variable IO offset account (which is currently fully offsetting). The equity release loan could be used later on to buy another IP. I don't have any deductible debt.

Firstly, am I correct in thinking that there is no issue with asking the bank to take the interest repayments for the IPs directly from this offset account ? ie it is no different to how I would use a 'normal' offset savings account. And the interest incurred for using the equity release funds is tax deductible ?
Is there a need to split this equity release loan/offset account for use on the 2 IPs ? Given that they are both for investment properties, I don't see it 'tainting' the purpose of the funds used but don't want complications down the track (eg. seen as cross collaterallising the IPs ?)

If the above is okay, I will probably use the funds here for simple renos and repairs on the IPs. If/when I do find the next IP, I will split this loan if I don't end up needing the whole amount

thanks

 

See my tax tip 1 on the dangers of borrowing and putting the money in an offer.

Then read the one on capitalising interest