BTX-Interest payable on loan to finance business expansion allowable or disallow?

topcat
topcat Trusted RegularRegistered Posts: 452
BTX - Interest payable on loan to finance business expansion allowable or disallowable on adjusted profits computation?

I thought this would be disallowable as it is not for trading purposes? Although the answer has it as allowable and i can not understand why?

I am never sure if i am wrong or the answer is with the amount of errors in Kaplan

Any help appreciated!

Thanks

Comments

  • MarieNoelle
    MarieNoelle Trusted Regular Hampshire/Surrey borderModerator, MAAT, AAT Licensed Accountant Posts: 1,433
  • Makkusu
    Makkusu Feels At Home BournemouthRegistered Posts: 94
    The loan is for a business expansion therefore it'd be allowable because it's in relation to the business.

    It's often easier to keep it simple on this basis, unless you're given a wealth of information on the loan, if so, more investigating is required.
  • topcat
    topcat Trusted Regular Registered Posts: 452
    Thank you both for your help it is much appreciated
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