Interest on machinery and plant
You can claim the interest as a deduction if you have taken out a loan to purchase machinery or plant and it’s for use wholly and exclusively in your:
- trade or profession
- office or employment
If you’re trading, claim the interest in your accounts or in box 18 of the tax return self-employment section.
If you’re employed claim the interest in this section (section 8 on the long paper return).
‘Wholly and exclusively’ means that the rule is only satisfied if your sole purpose for incurring the expense is for the purposes of your trade, profession or vocation.
Filling out the form
Enter the name of the lender and enter the amount of gross interest that’s been charged and paid on the loan.
If tax has been deducted from the interest prior to making the loan payments include the amount of interest deducted.
For more information about interest tax relief for machinery and plant:
Interest tax relief