Related Commentary  Related CasesRelated HMRC Manuals

58(1)  In calculating the profits of a trade, a deduction is allowed for incidental costs of obtaining finance by means of–

(a)a loan, or

(b)the issue of loan stock,

if the interest on the loan or stock is deductible in calculating the profits of the trade.

58(2)  “Incidental costs of obtaining finance”  means expenses–

(a)which are incurred on fees, commissions, advertising, printing and other incidental matters, and

(b)which are incurred wholly and exclusively for the purpose of obtaining the finance, providing security for it or repaying it.

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