Joe Brough highlights situations where a tax deduction for qualifying loan interest can be claimed by an individual.
It is generally believed in life that there are two certainties: death and taxes. However, when investing in or growing a business, paying interest never seems far behind.
Qualifying criteria
When interest is paid on a loan made for business purposes, a deduction from profits is available where it meets the ‘wholly and exclusively’ rules. Companies are also able to claim a deduction for non-trade interest under the loan relationship rules. For individuals acting on their own or in partnership, where interest is incurred as part of their residential property business, relief is given as a tax reducer in the tax computation.
In circumstances where an individual takes out a loan and pays qualifying loan interest, tax relief is given
