½Û×ÓÊÓƵ

Introduction

Income tax relief is available for interest paid on loans taken out by an individual for certain kinds of investment in a close company¹.

For an interest payment to qualify for relief, two sets of conditions must be satisfied. First, in relation to the loan itself, there are conditions as to its application and the status of the close company concerned. Secondly, there are conditions that must be satisfied at the time of the interest payment; these relate to the status of the company and its relationship to the individual during the period from the application of the loan up to the date the payment was made.

The commentary below discusses the income tax relief available for interest paid by individuals to acquire an interest in a close company. This should be read in conjunction with E1.820, which includes details about general restrictions that apply to all qualifying loans and the mechanism by which relief is given.

Conditions relating to the company

Meaning of close company

To