Profits for Class 4 contribution purposes may be reduced by certain payments of interest or annual payments for which income tax relief is, or can be, given (see ¶3050ff.). The deduction is available in the year in which payment is made to the extent that such interest has been paid and incurred wholly or exclusively for the purposes of any relevant trade, profession or vocation. Where the profits or gains of the tax year of payment are insufficient to allow relief in full, the payments are carried forward and deducted from, or set off against, the first available profits or gains of any subsequent year.
Want to read more?
This content requires a Croner-i Tax and Accounting subscription.