<b>Any Answers:</b> Incidental costs of finance. By Paula Tallon
Paula Tallon, director of direct tax with Chiltern responds to accountants' queries.
Q: My client is refinancing a loan and in the terms of the original loan there is a charge payable to the lender. Is this cost part of the incidental costs of finance so that relief will be available?
A: The first question is whether your client is an individual or a company as the rules are very different. If your client is a company the payment is dealt with under the loan relationship provisions.