Sole Trader Borrowing

I currently have about £50k worth of stock, paid for using savings. I have 2 questions #1 If I take out a personal loan now (ie after purchase) to cover this stock, can I offset the interest against tax. #2 If I take out a personal loan now to buy new stock, can I offset interest against tax in that scenario? I am accounting on a cash basis (in case that matters). THanks

Hi,
This forum is for general queries only and is intended to help you self-serve. We are unable to provide specific advice tailored to individual circumstances.
You may wish to contact our team for advice
Self Assessment: general enquiries
Alternatively you may want to seek professional advice.
Thank you.
 

This is a general enquiry. The question is simply whether the cost of a loan obtained to finance inventory but obtained after that inventory is purchased with ones own money, is eligible to be offset against profit. I have obtained professional advice which says that it is, but wanted to confirm with HMRC.

Hi,
No as you will have already claimed relief to buy the inventory.
Thank you.

Hi Thanks for your answer. Which of the two questions are you answering? When will you answer the other? In regards to the answer you have given, nothing in the original question mentions any claimed relief. Is the answer dependent on when other relief is claimed?

Hi,
For the original question on this thread:

1. No, you cannot.
2. Yes, you can.

Thank you.