Allowable interest?

Allowable interest?

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Client is a sole trader and bought property in April 2004 with the intention of using as business premises.

Has now sold the property without occupying as circumstances with business premises occupied have changed.

Is the interest paid on the bank loan an allowable expense against trading profits?

I have evidence from the solicitor at the time of purchase regarding the intention of my client to move business into premises.
Rob

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By TROGGY
23rd May 2005 12:43

You should be OK.
Provided the expenditure was incurred "wholly & exclusively" for business purposes then you should be OK.
This certainly appears to be the case from what you say.

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