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

topcat

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

MarieNoelle

See here http://www.hmrc.gov.uk/manuals/bimmanual/bim45690.htm

Makkusu

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

Thank you both for your help it is much appreciated