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BIM45650 | Specific deductions - interest - contents

From HM Revenue & Customs · Business Income Manual

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.

Contents23 entries

  1. BIM45665Specific deductions - interest: Must be paid wholly and exclusively for business purposes
  2. BIM45670Specific deductions - interest: Only part of the payment satisfies the wholly and exclusively test
  3. BIM45675Specific deductions - interest: Separate loan for specific asset or purpose
  4. BIM45680Specific deductions - interest: Change in use of funds or asset
  5. BIM45685Specific deductions - interest: Security for the funds
  6. BIM45690Specific deductions - interest: Funding the business
  7. BIM45695Specific deductions - interest: General business accounts, mixed use accounts and offset accounts
  8. BIM45700Specific deductions - interest: Withdrawal of capital from a business
  9. BIM45705Specific deductions - interest: Overdrawn capital account
  10. BIM45710Specific deductions - interest: overdrawn capital account - no adjustment for revaluations
  11. BIM45715Specific deductions - interest: Overdrawn capital account - adjustments for depreciation and losses
  12. BIM45720Specific deductions - interest: Overdrawn capital account - herd basis
  13. BIM45725Specific deductions - interest: overdrawn capital account - Silk v Fletcher
  14. BIM45735Specific deductions: interest - Partner's capital
  15. BIM45740Specific deductions - interest: On late paid tax, NIC and contract settlements
  16. BIM45755Specific deductions - interest: properties occupied rent-free
  17. BIM45760Specific deductions - interest: Interest always a revenue item
  18. BIM45765Specific deductions - interest: Exclusion of double relief
  19. BIM45770Specific deductions - interest: to be treated as a trading loss
  20. BIM45780Specific deductions: interest: alternative finance arrangements - overview
  21. BIM45781Specific deductions: interest: alternative finance arrangements - tax treatment
  22. BIM45782Specific deductions - interest: alternative finance arrangements - transfer pricing
  23. BIM45730Specific deductions - interest: Overdrawn capital account - example