Originally posted by mst1958
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Expenses that are tax deductible against salary must be incurred "wholly, exclusively and necessarily" in the performance of the duties.
A tough hurdle and one that is very limited in practice.
Expenses that are tax deductible against profits must be incurred "wholly and exclusively" in the course of earning profits. That might be easier, but HMRC don't argue that the loans are profits.
Expenses that are tax deductible against "other income" have to be directly attributable to that income. Again a high hurdle but perhaps possible.
The costs of tax advice, tax mitigation, tax planning are NEVER allowed. Aside from various tax cases on the issue, tax is seen as a personal issue and it is almost inconceivable that the cost of a personal matter will ever be tax deductible against salary (not "necessary"), profits (not a business cost) or other income (not directly attributable).
None of this is new. This is solid tax law and has been for decades.
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