BIM45650 - Specific deductions - interest: Contents
This chapter applies for income tax purposes to the computation of trading profits and property income. It does not apply for CT purposes, where there are separate rules in the loan relationships legislation (CFM30000). From 6 April 2005 payments of profit share returns and alternative finance returns are treated for tax purposes as interest.
| BIM45665 | Must be paid wholly and exclusively for business purposes |
| BIM45670 | Only part of the payment satisfies the wholly and exclusively test |
| BIM45675 | Separate loan for specific asset or purpose |
| BIM45680 | Change in use of funds or asset |
| BIM45685 | Security for the funds |
| BIM45690 | Funding the business |
| BIM45695 | General business accounts, mixed use accounts and offset accounts |
| BIM45700 | Withdrawal of capital from a business |
| BIM45705 | Overdrawn capital account |
| BIM45710 | Overdrawn capital account - no adjustment for revaluations |
| BIM45715 | Overdrawn capital account - adjustments for depreciation and losses |
| BIM45720 | Overdrawn capital account - herd basis |
| BIM45725 | Silk v Fletcher, Special Commissioner’s decision |
| BIM45730 | Overdrawn capital account - example |
| BIM45735 | Partner's capital |
| BIM45740 | On unpaid tax |
| BIM45745 | Mortgage interest relief - mixed use of premises |
| BIM45750 | Examples |
| BIM45755 | Properties occupied rent-free |
| BIM45760 | Capital employed in the business |
| BIM45765 | Exclusion of double relief |
| BIM45770 | To be treated as a trading loss |
| BIM45775 | Annual interest payable abroad |
| BIM45776 | Gross interest paid abroad - conditions for relief |
| BIM45780 | Alternative finance arrangements - overview and commencement date |
| BIM45781 | Alternative finance arrangements - tax treatment |
| BIM45782 | Alternative finance arrangements - transfer pricing |
The interest on some loans for specific purposes is allowable under specific provisions and must comply with that legislation, see SAIM10000 onwards.
