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My clients are an unmarried couple A and B who have recently purchased shares from A’s father in the family trading company. The purchase was funded partly from cash savings and partly by way of a bank loan.
They have now provided the information for preparation of their self-assessment tax returns and the loan is in joint names because it is secured on the jointly owned property. A is a higher rate taxpayer but B has little income apart from the dividends that will now be received on the shares. The loan balance is less than the purchase price of A’s shares.
Can Taxation readers tell me whether I am able to claim the whole of the interest paid on the loan against A’s income or must I apportion the interest charges between A and B?
Query 19 395– Passerine.
Reply by Goston
A simple replacement loan on its own may not be...
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