Interest Relief on Borrowing to Invest in a Company

[Mortgagor]

Hi,

A recent article in the Sunday Business Post (at [broken link removed])
contains the following paragraph

"17 Claim interest relief on borrowing to invest in a company

You can claim tax relief for interest paid on money borrowed to invest in a trading company. The money must be used to buy shares in the company. This relief is not allowed where you also claim BES relief."

I would love to see some more information on this relief e.g. what are the restrictions etc. I presume you can't just borrow money to buy shares in a large ISEQ company (that would be ludicrous) - so what are the conditions? Do you need to be a director, own a minimum percentage of the company etc?

The advisability of borrowing money to invest in shares is a discussion for another day but would be interested to get more info as described above...

Thanks,
INBSMember.

 

[Henrieta]

Hi,

If you click on the link and go to section 248 you will find information on your query. This is the Revenue Guidance on the section. You need to hold a material interest (5% or greater) in the company and be actively involved in the running of company. There are some other provisions on the use of the funds loaned to the company which you can read through yourself in the link.

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