BIM45650 - Specific deductions - interest: contents

This chapter applies for Income Tax purposes to the computation of trade profits and property income. References in the text to a ‘business’ should therefore be taken to include both trades and property businesses. The chapter does not apply for Corporation Tax purposes, where there are separate rules in the loan relationships legislation (see CFM11000).

The interest on some loans for specific purposes is allowable under specific provisions and must comply with that legislation, see SAIM10000 onwards.

1. BIM45665

   Must be paid wholly and exclusively for business purposes
2. BIM45670

   Only part of the payment satisfies the wholly and exclusively test
3. BIM45675

   Separate loan for specific asset or purpose
4. BIM45680

   Change in use of funds or asset
5. BIM45685

   Security for the funds
6. BIM45690

   Funding the business
7. BIM45695

   General business accounts, mixed use accounts and offset accounts
8. BIM45700

   Withdrawal of capital from a business
9. BIM45705

   Overdrawn capital account
10. BIM45710

    Overdrawn capital account - no adjustment for revaluations
11. BIM45715

    Overdrawn capital account - adjustments for depreciation and losses
12. BIM45720

    Overdrawn capital account - herd basis
13. BIM45725

    Overdrawn capital account - Silk v Fletcher
14. BIM45730

    Overdrawn capital account - example
15. BIM45735

    Partner's capital: contents
16. BIM45740

    On unpaid tax
17. BIM45755

    Properties occupied rent-free
18. BIM45760

    Interest always a revenue item
19. BIM45765

    Exclusion of double relief
20. BIM45770

    To be treated as a trading loss
21. BIM45780

    Alternative finance arrangements - overview
22. BIM45781

    Alternative finance arrangements - tax treatment
23. BIM45782

    Alternative finance arrangements - transfer pricing