If an individual starts in business by buying a share in a partnership, it will often be the case that they will need to borrow to fund the purchase. Income Tax Act 2007 provides for relief to be given to an individual who pays interest on certain loans, including a loan used:

• to buy a share in a partnership or contribute capital to a Limited Liability Partnership; or
• to contribute money to a partnership, by way of capital or premium, that is used wholly for the purposes of the trade or profession carried on by the partnership; or
• to advance money to a partnership that is used wholly for the purposes of the trade or profession carried on by the partnership; or
• to replace a previous qualifying loan used for one of the above purposes.

Various conditions have to be met for the relief to be given but even if they are met, no relief can be claimed if the partnership business consists solely of the occupation of commercial woodlands.

There are also special provisions restricting the interest otherwise eligible for relief in the case of a film partnership.