Expense deduction on personal investment income

Dear HMRC The personal investment provides (bonds,ETF,Stocks): 1. Dividends (ETF) 2. Interest income(Bonds) 3. Capatial gain (disposal of assest) Can the margin interest be deducted in full from taxable profits? Example, Orginal taxable income under my profolio, Dividends 20K Interest income 20K With margin leverage, Dividends 40K Interest income 30K Cost of Margin interest 5k Can Margin interest cost be deducted in full from taxable profits? If not,then what criteria I need to be so that I can work/make monies on above senerios? Register as sole trader? Thanks

Hi terrywykwong,
No you cannot claim the interest.
Please see:
CG15284 - Expenditure: interest and finance charges
HMRC cannot give financial advise so you would need to contact a professional for this.
Thank you. 

Dear HMRC, As I know the Capital Gain is not eligiable for the interest claims under the policy, so I just focus on the dividend and interest income on example. Could you help on advice on that parts? Thx

Hi,

To enable us to provide a response please can you clarify your question.

Thank you.

Dear HMRC , Oh sorry about that, My question is: When I generate the dividend and interest income from the security/bonds investment, and in the mean time, the investment also generate some margin interest expense. Can these expense be off set from the taxible dividend/interest income? Example: Dividends 40K Interest income 30K Cost of Margin interest 5k Total taxiable income =70k-5 k =65k thx

Dear HMRC, I further clafiy the question is that there is no CGT invoved and looking forwrard for your reply. Thx

Hi,

Please refer to our previous answer.

Thank you.

I think OP is saying that the previous link is for CGT expenditure, but in his case he's not trying to claim the £5 interest expense against any CGT profit but against Income + Dividends. I'm interested as well in that scenario, as there's not CGT involved in that case, just Income + Dividends. Could the Interest Expense be deducted in that case? And is there any other non-CGT HMRC article with further information about the subject to read further pls?

hi Mickael28, That what I am asking! Thz

Hi mickael28

No, interest is not an allowable expense against dividends paid to an individual. The company itself may be able to claim  expenses for fund management but this would need to be directed to the Corporation Tax forum.

Thank you