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loan to buy a business - is interest allowable?

loan to buy a business - is interest allowable?

Just want to confirm please:

Client took personal loan to purchase a sole trader business. Is the interest allowable business expense?

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19th Jun 2012 11:28

Yes

See BIM45690.

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By MBK
19th Jun 2012 13:36

And ...

the loan should be shown as a liability in the sole trader accounts.

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