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Legislation
Income Tax Act 2007

Crossheading The relief: introduction

  • Section 383 Relief for interest payments
  • Section 384 General restrictions on relief under Chapter
  • Section 384A Restriction on relief where arrangements minimise risk to borrower
  • Section 384B Restriction on relief where cash basis applies
  • Section 385 General provisions about loans
  • Section 386 Loans partly meeting requirements
  • Section 387 Exclusion of double relief etc
  1. The relief: introduction
  2. Loans partly meeting requirements

Section 386 | Loans partly meeting requirements

From legislation.gov.uk

(1)If, at the time a loan (“the mixed loan”) is used, only part of the mixed loan is a loan to which any of the provisions specified in section 383(2) apply, for the purposes of this Chapter that part (“the qualifying part”) is treated as a loan to which the provision in question applies.

(2)Accordingly, the corresponding proportion of the interest on the mixed loan is eligible for relief.

(3)If a mixed loan is partly repaid, for the purposes of this Chapter the corresponding proportion of the repayment is treated as repaying the qualifying part (but see section 406(5)).

(4)In this section “the corresponding proportion” means the proportion that the qualifying part bears to the whole of the mixed loan at the time the mixed loan is used.

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