Tax reliefs
Tax relief is given for certain losses incurred (e.g. trading losses and certain qualifying interest payments).
Qualifying interest payments
· Purchase of a share in a partnership
· Purchase of ordinary shares in, or loans to a close trading company (controlled by 5 or fewer)
· Purchase of ordinary shares in an employee controlled UK resident unquoted trading company
· Purchase of plant & machinery by an employee for use in his employment
· Payment of inheritance tax by a personal representative of a deceased’s estate
Interest not allowed
· Interest on debts used to finance expenditure for trade purpose
· Interest incurred on borrowings to acquire or improve commercial letting property
· To provide working capital for a letting trade
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