Self Assessment And A Business Loan

[tobeloy]

I am self employed and complete my own tax return as its quite straight forward. I am going to be loaned some cash (for a second hand vehicle purchase) from a family member but I have a few questions.

Where on the Self assessment forms do I enter a loan as its not classed as income as such?
Once I have the loan and make the vehicle purchase can I still claim the 40%? tax relief for a vehicle purchase even though it is not coming from taxable income?
My other concern is that will this loan make any difference on my actual income statement SA302 I think that I would present to a mortgage lender seeing as its cash in and same amount out for vehicle purchase?

[anniebird]

The loan itself does not need to be shown on your self assessment as it is not trading income. Similarly the repayments will not be shown as they are capital repayments. If your family member is charging interest on the loan then the interest payments must be shown as they are an allowable expense for taxation purposes. For the purpose of a mortgage application the loan is not part of your trading income so should not be included.

[tobeloy]

Thanks for your answer, I guess the loan I get would have to go into the bank to prove receipt of the loan and to justify any repayments from the business account?