Section 398 | Loan to invest in partnership

(1)This section applies to a loan to an individual that is used in one or more of the ways specified in subsection (2).

(2)The ways are—

(a)purchasing a share in a partnership,

(b)contributing money to a partnership, by way of capital or premium, that is used wholly for the purposes of the trade or profession carried on by the partnership,

(c)advancing money to a partnership that is so used, and

(d)repaying another loan to which this section applies.

(3)This section is subject to section 411 (ineligibility of interest where business is occupation of commercial woodlands).