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Why a loan isn't taxed
A loan is a liability, not earnings — you receive it and must pay it back, so it is not income and not subject to tax. This is a common and understandable point of confusion.
Where tax relief applies
The interest on business borrowing is generally an allowable cost that reduces taxable profit; the capital repayment is not, because it reduces a liability rather than being a cost of trading.
What it means for you
Credicorp lends to your company, not to you personally, and takes no personal guarantee. See business loans or apply online.
Frequently asked questions
Is a business loan taxable?
No. A loan is money you must repay, not income, so it is not taxed. Only the interest matters for tax, as a deductible cost.
Can I claim tax relief on a business loan?
On the interest, generally yes, if the borrowing is for business purposes. The capital repayment is not deductible. Confirm the treatment with your accountant.
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Read →Funding for UK limited companies
Credicorp lends to your company, not to you personally — short-term working capital with no personal guarantee. See what your business could access.