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Kaplan revision kit question fubuki co
Why is tax relief not considered for debt issue cost?Thanks in advance for your help
You could be referring to two different things.
Firstly, the issue costs themselves are only relevant when determining the total amount borrowed and therefore the interest on which there is a tax saving.
Secondly, although I do not have the Kaplan Kit (only the BPP Kit), the examiners own answer has a note stating “Full credit will be given if the issue costs are included in the funds borrowed”.
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