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Non shareholder wife lending to husband's company

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A wife takes out a loan to lend money to her husband’s company. She works for the company but isn't a director (she's company secretary) and she isn’t a shareholder – husband owns 100% of the shares.  I initially thought that the interest she pays would allowable for income tax relief as she is a connected person to her husband, but I can’t find anything to confirm this. It looks like she would need to own at least 5% of the shares, and as she doesn’t, the interest isn’t allowable. Am I correct?

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Psycho
By Wilson Philips
08th Aug 2019 15:35

Did you not read section 394(2) of ITA 2007?

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By Tax Dragon
08th Aug 2019 15:58

...through to s395(6).

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Replying to Tax Dragon:
Psycho
By Wilson Philips
08th Aug 2019 16:03

Indeed

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