Mark McLaughlin looks at a potential pitfall for individuals with outstanding loans to buy shares in their company.
Tax relief can be claimed when an individual borrows money to invest in their company, if certain conditions are satisfied. The borrowed funds might be used (for example) to purchase additional ordinary shares in the company, or to lend money for the company’s business use.
Meeting the conditions
The conditions for tax relief to be available for interest paid on commercial loans for the above purposes:&
