SARS Clarifies Interest Deductibility on Loans Used to Redeem Preference Shares

The South African Revenue Service (SARS) has published Binding Private Ruling: BPR 424, which clarifies the deductibility of interest on loans used to redeem preference shares.The ruling considers whether interest on a post construction loan used to redeem preference shares is deductible under section 24J of the Income Tax Act. SARS confirms that the applicant may deduct interest on the new se…