Alexander G

The HS340 guidance explains that tax relief is available for interest on loans when the borrowed funds are used for certain specified purposes. I’m looking to confirm whether this tax relief extends to loans linked to Family Investment Companies (FICs). For instance, if an individual takes out a mortgage in their personal name and subsequently lends the proceeds to a limited company through a Director's Loan, would the individual still qualify for tax relief on the mortgage interest? This assumes the company uses the funds to purchase shares or invest in publicly traded companies, rather than for purposes like buying machinery (as highlighted in the HS340 examples). Any clarification or reference to relevant HMRC guidance would be greatly appreciated.