This module covers the rules for obtaining a tax deduction on interest paid for both income tax and corporation tax. It begins with income tax relief on interest paid as a trading expense, and then shows how similar rules operate in the case of a property letting business. The final income tax section covers relief against general income for loans to invest in businesses. This is followed by the corporation tax part of the module, which shows how the company loan relationship rules provide a regime which differs markedly from that which applies under income tax.
On completion of this online course, you will gain an understanding of:
- the rules which govern income tax relief on interest paid in a trade or busines
- how these rules operate in a property letting business
- when business interest paid may be disallowed
- how interest on a loan to invest in a close company is treated for income tax
- the loan relationships rules which apply to companies
- the effect of the wider relief for interest available to companies.