yes that is fine. The fact that you have borrowings of 110% doesnt matter. The loan interest expense was incured wholly and exclusively for the business and is allowable as an expenses.
Nick
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Nick
Nick Craggs FMAAT ACA AAT Distance Learning Manager
Let's say I now take £10k rent the very next year.
So rent and maintenance net off.
If I take the £10k out of the business, can I still claim the interest as long as the loan is alive?
Can't see a duplicate post, can see older post about loans and interest, but inference is it's a commercial loan rather than one from family.
Do you have the ones from family fully documented including interest rate and are they to you personally or do the family understand it's to the business?
Btw they will pay tax on interest received.
Need to be careful there repaying yourself personally if the are loans to other parties o/s-could be seen as preference in event of business collapse.
edited as it now looks like Shaun has merged the two threads! And for typos due to not wearing glasses
-- Edited by Cheshire on Thursday 21st of January 2016 10:46:03 PM
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Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
