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Legislation
Income Tax Act 2007

Crossheading General and supplementary

  • Section 406 Effect of recovery of capital in the case of some loans
  • Section 407 Events counting as recovery of capital for section 406
  • Section 408 Replacement loans
  • Section 409 Business successions between partnerships
  • Section 410 Other business successions and reorganisations
  • Section 411 Ineligibility of interest where business is occupation of commercial woodlands
  • Section 412 Information
  1. General and supplementary
  2. Replacement loans

Section 408 | Replacement loans

From legislation.gov.uk

(1)This section applies to a replacement loan.

(2)In subsection (1) “replacement loan” means a loan to which section 392, 396, 398 or 401 applies because the loan is used in repaying another loan (“the replaced loan”) to which that section applies.

(3)This Chapter, except for sections 385 and 386, applies to the replacement loan as if that loan and the replaced loan were a single loan (subject to subsection (5)).

(4)Accordingly, any restriction under section 406 (effect of recovery of capital in the case of some loans) which applies to the replaced loan applies to the replacement loan.

(5)But this Chapter, except for sections 385 and 386, applies as if references to the use of the loan were references to the use of the original loan.

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