Tax telief for interest on a loan to a company

If you make obtain a loan in order to purchases shares in a company or lend fund to a company you may be able to obtain tax relief for any interest you have to pay. This would be claimed via the self assessment tax return and as well as being given when you acquire shares in the company is also given on a loan to a close company which is used wholly and exclusively for the purposes of its business. In order to qualify though you would need to meet the capital recovery condition and either full time working condition or hold a material interest. The capital recovery condition is that in the period from the use of the loan to the payment of the interest you have not recovered any capital from the company, apart from any amount treated as a repayment of the loan. The material interest condition is that you own more than 5% of the shares/entitled to >5% of the profits. The full time working condition states that you need to spend the greater part of your time in working for the company. If you think this may apply to you ensure that you get the conditions double checked in detail to ascertain whether they apply to you.