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?
8th Aug 2019
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