An individual is entitled to tax relief against their general income for interest paid on loans or other advances (known as alternative finance) which are used for qualifying purposes. These are limited and subject to tough conditions.
The Flow Chart - Tax Relief for Loan Interest will guide you through the conditions for qualifying loans etc. to help you decide if you can claim tax relief for interest paid
Definitions for the flow chart:
Loan creditors with a beneficial interest in the debt (excluding commercial and business loans) also have an interest in the company for these purposes.
Capped tax relief is the greater of £50,000 or 25% of an individual’s adjusted income for a tax year. Essentially, adjusted income for this purpose is taxable income less pension contributions and gift aid payments they have made.