The terms on which loans for investment in trading companies and properties are allowed are complex and have been the subject of anti-avoidance legislation. There are significant ongoing conditions. The loan must be for the purpose of acquiring shares in the company or making loan capital investments. There are conditions in relation to the use of the money.<\/p>\n
The company in which the shares are taken or a loan is advanced must comply with certain conditions, including, in particular, that it is a trading or rental company or part of such a group. The monies advanced or invested must be used for certain purposes, such as the particular trade, improvement or repair of premises or the same activity through subsidiaries, as the case may be. It generally may be lent onwards.<\/p>\n
The company must have a material interest (at least 5% stake in the company in which the investments have been made. There must be at least one common director. The relationship between the company and the company in which the investment is made must be maintained.<\/p>\n
There must not be any recovery or refund of capital. There may be a\u00a0 deemed recovery of capital in certain circumstances which is equivalent to a reduction in the loan or investment.\u00a0 \u00a0There are wide anti-avoidance provisions to ensure that the company and entities connect, but it does not receive value for or repayment of the loan directly or indirectly while it is outstanding.<\/p>\n\n
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Nature of Charges Charges are categories of expenditure that are treated differently (and often more favourably) than other expenditures that qualify for allowances and deductions in the computation of tax liability. They are treated in the nature of the first call and are taken off the top of income. Charges relate principally to interest on […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_exactmetrics_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0,"footnotes":""},"categories":[398],"tags":[],"_links":{"self":[{"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/posts\/10988"}],"collection":[{"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/comments?post=10988"}],"version-history":[{"count":6,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/posts\/10988\/revisions"}],"predecessor-version":[{"id":32780,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/posts\/10988\/revisions\/32780"}],"wp:attachment":[{"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/media?parent=10988"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/categories?post=10988"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/tags?post=10988"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}