The opportunities for claiming tax relief on interest paid on borrowings are few and far between. They are for:
- the purchase, in certain circumstances, of life annuities if you are aged 65 or over;
- buying a share in:
– an employee-controlled company;
– a close company (ie controlled by five or fewer shareholders), or lending capital to it;
– a partnership, or contributing capital to a partnership, if you are a partner;
- buying plant and machinery for use in your job or partnership so long as the plant and machinery attracts capital allowances for tax purposes (see Chapter 7).
Interest is also allowable for tax purposes on a replacement loan where the interest on existing borrowings qualifies for ...