Taxes Consolidation Act 1997 section 250

Extension of relief under section 248 to certain individuals in relation to loans applied in acquiring interest in certain companies

Section 250 extends the interest relief available under section 248 to directors and employees who borrow money to invest in certain companies, even where those individuals do not meet the normal conditions of holding at least 5% of the ordinary share capital or working for the greater part of their time in the management of the company.

• Full-time and part-time directors and employees of private trading or rental income companies qualify for unlimited interest relief on borrowings to acquire shares in, or lend money to, those companies.
• Full-time directors and employees of private holding companies (or connected trading/rental income companies) also qualify for unlimited relief.
• Full-time directors and employees of public companies qualify for limited relief, capped at €3,050 of interest per year of assessment.
• Relief is withdrawn where a "back-to-back" loan arrangement exists — that is, where the company or a connected person lends money back to the investor or a connected person other than in the ordinary course of a money-lending business.