The position is that tax relief is available, at varying rates and subject to certain ceilings, in respect of interest paid by an individual on a loan used by that individual for the purchase, repair, development or improvement of his/her sole or main residence or the sole or main residence of his/her former or separated spouse (or civil partner). An individual may also claim tax relief on interest paid on a loan used by him or her in the purchase, repair, development or improvement of the sole or main residence of:
(a) his or her widowed parent and/or widowed parent in law; and
(b) a relative of his or her where such relative is incapacitated by old age or infirmity from maintaining himself or herself.
There is no provision in tax law to grant tax relief to family members on loan interest paid by them on behalf of another family member.