Module 2

Question 1

Which Interest payments are qualifying interest payments and therefore can be deducted from total income?

Answer 1

1) Loans taken out by a partner in a partnership to buy plant and machinery

2) Loans to purchase an interest in a ‘close company’ (5 or fewer shareholders)

3) Loans to purchase a share in a partnership

Question 2

What are the ways to make tax efficient donations to charity?

Answer 2

1) Gifts of listed shares or land and buildings
2) Donations made via a payroll deduction scheme
3) Donations made under the Gift Aid scheme