In A Nowosielski v HMRC (TC01907 – 30 March) an individual (N) agreed to lend £100 000 to a company (V) of which he was a director. He financed this loan by increasing the mortgage on his house and claimed relief under what is now ITA 2007 s 392 for the additional interest he had to pay. HMRC rejected the claim on the grounds that although N was a director of V he did not own any shares in V and thus did not have a material interest in V within what is now ITA 2007 s 394. N appealed. The First-tier Tribunal allowed N’s appeal finding that he had a 50% interest in a company (P) which was associated with V whose controlling director was a major shareholder in P and was P’s main creditor entitling him to receive...
