An individual could claim tax relief on interest paid on money borrowed to acquire a share in a partnership.

Finance (No.2) Act 2013 abolished interest relief for all loans made on or after 15 October 2013 (save for some acquisitions of interests in certain farming partnerships. Interest relief for existing qualifying loans is to be phased out over 2014 – (75%), 2015 – (50%) and 2016 – (25%) with no relief available after 1 January 2017.

Revenue has confirmed that where a loan is issued post 15 October 2013 but it replaces an existing qualifying loan and the replacement loan does not exceed the balance and term of the existing loan, tax relief will still be permitted in line with the phased out relief until 1 January 2017.

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