Jurisdiction(s):
United Kingdom

Related legal acts

Key definition

Deductible definition

What does Deductible mean? In insurance and reinsurance practice, a deductible is the agreed self‑insured amount that the insured (or reinsured) must bear before the (re)insurer’s liability attaches. It is a contractual term rather than a statutory concept; its operation depends on the policy or reinsurance wording and general principles of construction. A deductible is a specified sum applied to a covered loss or claim. Claims are payable only to the extent the loss exceeds the deductible, or are settled net of the deductible. It may operate per claim, per loss/occurrence, or as an aggregate for the policy period. Wordings should state whether...

UK real estate investment: interest deductibility for corporation and income tax payers—loan relationships, refinancing limits, incidental finance costs, anti-avoidance (including CIR), and withholding tax

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Practice notes

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This Practice Note

This Practice Note explains how far interest costs are Deductible for individuals within income tax and companies within corporation tax when they invest in UK real estate assets. The treatment of interest for those acting as dealers in UK real estate falls outside this Practice Note. In a standard property investment, the taxpayer acquires a property intending to keep it for an extended period and to generate receipts by letting the premises to tenants. By contrast, where property is bought for re-development with the intention of selling at a profit, that activity will generally amount to trading (or dealing) in real estate rather than investment. For further guidance, see Practice Note: Dealing in property or property investment? As a broad principle, interest outgoings on borrowing used to fund a UK property business are deductible, if at all, only in calculating income Profits (ie profits arising from rental income) and they are not deductible when calculating any capital gain realised on the disposal of the property...

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Web page updated on 22/05/2026

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