Brought to you by
taxinsider

Tax Insider publishes monthly newsletters and reports.

Save content
Have you found this content useful? Use the button above to save it to your profile.

Tax Insider Tip: Deduct Incidental Costs Of Loan Finance

7th Jul 2014
Brought to you by
taxinsider

Tax Insider publishes monthly newsletters and reports.

Save content
Have you found this content useful? Use the button above to save it to your profile.
The incidental costs of acquiring finance can be deducted in computing the profits of the business and should be claimed. Costs which may be allowable include:
 
• legal and professional expenses associated with negotiating the loan and preparing the documents;
• underwriting commissions, brokerage and introduction fees;
• land registry fees;
• search fees;
• valuer’s fees;
• commitment fees for making a loan available;
• commission(s) for guaranteeing a loan.
 
Example:
Hamish takes out a bank loan to fund the expansion of the business. He incurs professional fees of £500 in connection with the loan and pays an arrangement fee of £200.
 
He is able to deduct £700 in respect of these expenses when computing his business profits.
 
 

This is a sample tip taken from our 136 page guide:
101 Ultimate Tax Strategies Revealed.

Click here to receive a free copy of this tax saving guide today!

Tags: