EIM32861 - Other expenses: interest paid: example

A university lecturer acquires a computer on 6 April 2023 for research purposes. The requirements of EIM70790 are met and they聽are聽entitled to capital allowances. The computer cost 拢6,000 and was financed by a loan on which they聽paid interest of 拢600 in 2023 to 2024. 25% of their use of the computer is for private purposes. They are聽entitled to capital allowances to the extent of the business use, see EIM36570. They claim AIA of 拢6000 x 75% = 拢4,500.

Relief is available to the same extent for interest paid.

拢600 脳 75%聽= 拢450

Relief for 拢450 is available against general income.