Qualifying Loan Interest

[vorabj]

A Partner some years ago has taken out a loan of £150K which he has lent to the partnership (by remortgaging his personal proerty).
The interest on this loan is re-imbursed by the partnership. Hence the interest is charged in the partnership accounts. In his personal tax
return the interest re-imbursed is shown as receipt and the same amount paid to the building society is claimed as a deduction being interest on qualifying loan.

This has been going on since the loan was taken out 6 years ago. The partnership has tax losses brought forward and the Partner has large personal income.

So would it not be better for the partnership not re-mburse the interest hence it can use up that much more of the losses brought forward and at the same time
for the partner to reduce his taxable earnings by not getting a receipt.

Will HMRC accept this change of treatment. I know by changing it - the partner will not get fully re-imbursed buut just the tax relief. But this is of not a concern
as the it is a family partnership.

Thank you all in anticipation of a reply.