BIM45800 - Specific deductions - incidental costs of loan finance: introduction and layout of guidance: contents

S58, S59 Income Tax (Trading and Other Income) Act 2005

Income Tax

A statutory deduction in computing the profits of a trade applies to the incidental costs of raising loan finance which would otherwise not be an allowable deduction. The rules apply only to Income Tax.

There are special rules regarding the incidental costs of raising loan finance for businesses using the cash basis - see BIM70040

Corporation Tax

For Corporation Tax, incidental costs of raising loan finance are dealt with under the loan relationships rules. For details see CFM30000 onwards.

The guidance covers the following:

1. BIM45801

   Scope of the legislation
2. BIM45810

   Convertible loan or loan stock
3. BIM45815

   Expenses allowable
4. BIM45820

   Exclusions from relief
5. BIM45825

   Commitment fees