How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask bigduckontax Your Own Question
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 6326
Type Your Tax Question Here...
bigduckontax is online now

I took £50,000 from our joint account to start up as a sole

Customer Question

I took £50,000 from our joint account to start up as a sole trader (purchased existing business). If I repay our joint account at the rate of £15,000 per year, is this tax deductable?
Submitted: 9 months ago.
Category: Tax
Expert:  bigduckontax replied 9 months ago.

Hello, I am one of the experts on Just Answer and pleased to be able to help you with youe question.

Bad news I regret, only the interest on that loan would be deductible, but in any event it would not be allowed as you are merely using your own money to set up as a sole trader. Now had you set up a limited company to trade and loaned it 50K then that would be an entirely different kettle of fish and any loan interest paid allowable against Corporation Tax (CT). However, that interest would be taxable against you under the Income Tax (IT) regime. Always remember Benjamin Franklin's quip that in life there are but two certainties, death and taxes!

I am so sorry to have to give such dismal news.