Section 387: Exclusion of double relief etc
1072.This section contains restrictions which ensure that relief is only given once for a particular interest payment, and penalise attempts to switch between claiming relief as a trade etc expense and as a deduction from income under this Chapter. It is based on section 368 of ICTA.
1073.Subsection (1) contains the main rule. It denies relief elsewhere for any payment of interest for which relief is given under this Chapter.
1074.Subsections (2) to (6) contain further rules which prohibit relief under this Chapter in cases where the interest or “connected” interest is claimed as a trading etc expense. They derive from section 368(3) and (5) of ICTA. Section 52 of ITTOIA, based on section 368(4) and (5) of ICTA, makes similar provision in relation to restricting relief for interest in calculating the profits of a trade.
1075.Subsection (7) is based on section 368(6) of ICTA but has been adapted to fit better with Self Assessment. See Change 67 in Annex 1.
1076.Section 368(2) of ICTA is redundant and has not been rewritten. See the commentary on section 404.