Rearrange your Borrowing to Qualify for Tax Relief

If you have build up the value of the company over the years, the shares you own in it are now worth a significant amount. Is there any possibility to use this capital to obtain some extra tax relief?

 

Rental property owners can reorganise their borrowing to claim extra tax relief on loan interest. However, not everyone is lucky to have a property they can rent out. But if you’re a shareholder in a limited company you may be eligible for a similar tax break.

Interest paid on a loan you use to buy shares in a close company qualifies for tax relief. A close company is a company that is under the control of five or fewer people. Usually the shareholders are the ones who control it, so if you and no more than four others own over 50% of the shares, you will be eligible for the tax saving plan. For the loan interest to qualify for tax relief you must either work full-time for the company or own at least 5% of its ordinary shares

Contact KVS Accountants for more details and advice on tax reliefs.

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