Answers · UK 2025/26
Can I get tax relief on a loan used to invest in a company or partnership?
Yes. Interest on a loan used to invest in a qualifying company or partnership can be deducted from your income at your marginal rate, not just as a 20% credit.
Full answer
Qualifying loan interest relief allows you to deduct loan interest from your total income (not just against property income like buy-to-let). Qualifying loans include: loans to buy shares in or to lend money to a close company where you own 5% or more of the ordinary share capital; loans to invest in a partnership where you are a partner; loans to buy plant or machinery for use in your employment. The relief gives full marginal-rate deduction (40% or 45% for higher/additional rate taxpayers) unlike the buy-to-let mortgage interest restriction which gives only a 20% tax credit. Claim on your self-assessment return in the "reliefs" section.
This answer is informational only and does not constitute financial, tax or legal advice. Figures are for the 2025/26 UK tax year. See our methodology and sources.