Q&As

Can a person claim interest relief on a loan if he does not have a material interest in the relevant company?

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Published on LexisPSL on 03/12/2013

The following Tax Q&A provides comprehensive and up to date legal information covering:

  • Can a person claim interest relief on a loan if he does not have a material interest in the relevant company?

A person may make a claim for interest relief in a number of circumstances. One such circumstance is where a person takes out a loan to fund their acquisition of ordinary shares in a close company (the company).

If certain conditions are met, relief can be claimed for interest payments on the loan. These conditions relate to: the status of the company; the nature of the loan; and the relationship between the borrower and the company.The final category (relationship between the borrower and the company) includes a requirement that the borrower or his asso

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