TTM16208 – Statement of Practice

Annexe on finance costs: Definition of finance costs

SP4/00

8. Finance costs are defined at paragraph 63. All of the costs arising from debt financing should be included and the Inland Revenue will expect this provision to be interpreted very broadly. It could include off-balance sheet methods of financing. However, finance costs will not normally include costs incurred through the late payment of debts, such as interest paid to trade suppliers or interest on late payments of corporation tax/PAYE/VAT.

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