is eligible for that relief by virtue of section F42. . . 365,F38. . .

F38. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

is eligible for that relief otherwise than by virtue of section F42. . . 365, F39. . .

F39. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

the proportions of the total amount borrowed which were applied for different purposes; F5. . .

F5. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

the amount equal to the applicable percentage of that amount of interest; and

the amount which reduces his liability to nil.

any income tax reduction under Chapter I of Part VII or section 347B;

any relief by way of a reduction of liability to tax which is given in accordance with any arrangements having effect by virtue of section 788 or by way of a credit under section 790(1); or

any tax at the basic rate on so much of that person’s income as is income the income tax on which he is entitled to charge against any other person or to deduct, retain or satisfy out of any payment.

interest on a debt incurred by overdrawing an account or by debiting the account of any person as the holder of a credit card or under similar arrangements; or

where interest is paid at a rate in excess of a reasonable commercial rate, so much of the interest as represents the excess.

is under F50Part 2 of the Capital Allowances Act entitled to a capital allowance or liable to a balancing charge, (or would be so entitled or liable but for some contribution made by the employer), for any year of assessment in respect of F51plant or machinery belonging to him and in use for the purposes of the office or employment; and

pays interest in that year on a loan to defray money applied as capital expenditure on the provision of that F52plant or machinery;

in acquiring any part of the ordinary share capital of a close company F53complying with section 13A(2); or

in lending money to such a close company which is used wholly and exclusively for the purposes of the business of the company or of any associated company of it which is a close company satisfying any of those conditions; or

in paying off another loan interest on which would have been eligible for relief under section 353 had the loan not been paid off (on the assumption, if the loan was free of interest, that it carried interest);

that, when the interest is paid, the company continues to F53comply with section 13A(2) and the individual has a material interest in the company; and

that he shows that in the period from the application of the proceeds of the loan to the payment of the interest he has not recovered any capital from the company, apart from any amount taken into account under section 363(1); and

that, if the company exists wholly or mainly for the purpose of holding investments or other property, no property held by the company is used as a residence by the individual;

that, when the interest is paid, the company continues to F54comply with section 13A(2) and the individual holds any part of the ordinary share capital of the company; and

that in the period from the application of the proceeds of the loan to the payment of the interest the individual has worked for the greater part of his time in the actual management or conduct of the company or of an associated company of the company; and

that he shows in the period from the application of the proceeds of the loan to the payment of the interest he has not recovered any capital from the company, apart from any amount taken into account under section 363(1).

is the beneficial owner of, or able, directly or through the medium of other companies, or by any other indirect means to control, more than 5 per cent. of the ordinary share capital of the company, or

possesses, or is entitled to acquire, such rights as would, in the event of the winding-up of the company or in any other circumstances, give an entitlement to receive more than 5 per cent. of the assets which would then be available for distribution among the participators.

any relative or partner of the individual;

the trustee or trustees of a settlement in relation to which the individual is, or any relative of his (living or dead) is or was, a settlor (“settlement” and “settlor” having the same meaning as in F60Chapter IA of Part XV (see section 660G(1) and (2))); and

where the individual is interested in any shares or obligations of the company which are subject to any trust, or are part of the estate of a deceased person, the trustee or trustees of the settlement concerned or, as the case may be, the personal representative of the deceased.

the interest of the trustees of an approved profit sharing scheme (within the meaning of section 187) in any shares which are held by them in accordance with the scheme and have not yet been appropriated to an individual; and

any rights exercisable by those trustees by virtue of that interest.

the individual, either on his own or with any one or more of his associates, or

any associate of his, with or without other such associates,

if the trust relates exclusively to an exempt approved scheme as defined in section 592; or

if the trust is exclusively for the benefit of the employees, or the employees and directors, of the company or their dependants (and not wholly or mainly for the benefit of directors or their relatives), and the individual in question is not (and could not as a result of the operation of the trust become), either on his own or with his relatives, the beneficial owner of more than 5 per cent. of the ordinary share capital of the company;

in acquiring a share or shares in a body which is a co-operative as defined by section 363(5); or

in lending money to any such body which is used wholly and exclusively for the purposes of the business of that body or of a subsidiary of that body; or

in paying off another loan interest on which would have been eligible for relief under section 353 had the loan not been paid off (on the assumption, if it was free of interest, that it carried interest);

that the loan was made after 10th March 1981;

that, when the interest is paid, the body continues to be a co-operative; and

that in the period from the application of the proceeds of the loan to the payment of the interest the individual has worked for the greater part of his time as an employee of the body or of a subsidiary of the body; and

that he shows that in that period he has not recovered any capital from the body apart from any taken into account under section 363(1).

in acquiring any part of the ordinary share capital of an employee-controlled company; or

in paying off another loan, interest on which would have been eligible for relief under section 353 had the loan not been paid off (on the assumption, if it was free of interest, that it carried interest);

the shares are acquired before, or not later than 12 months after, the date on which the company first becomes an employee-controlled company;

the individual shows that in the period from the application of the proceeds of the loan to the payment of the interest he has not recovered any capital from the company, apart from any amount taken into account under section 363(1).

of the issued ordinary share capital of the company, and

of the voting power in the company,

in purchasing a share in a partnership; or

in contributing money to a partnership by way of capital or premium, or in advancing money to a partnership, where the money contributed or advanced is used wholly for the purposes of the trade, profession or vocation carried on by the partnership; or

in paying off another loan interest on which would have been eligible for relief under that section had the loan not been paid off (on the assumption, if the loan was free of interest, that it carried interest);

that, throughout the period from the application of the proceeds of the loan until the interest was paid, the individual has been a member of the partnership otherwise than as a limited partner; and

that he shows that in that period he has not recovered any capital from the partnership, apart from any amount taken into account under section 363(1).

he receives consideration of that amount or value for the sale, exchange or assignment of any part of the ordinary share capital of the company or of his share or shares in the co-operative or of his interest in the partnership, or of any consideration of that amount or value by way of repayment of any part of that ordinary share capital or of his share or shares in the co-operative; or

the close company, co-operative, employee-controlled company or partnership repays that amount of a loan or advance from him or the partnership returns that amount of capital to him; or

he receives consideration of that amount or value for assigning any debt due to him from the close company, co-operative, employee-controlled company or partnership;

references to the application of the proceeds of the loan were references to the application of the proceeds of the original loan; and

any restriction under subsection (1) above which applies to any loan which has been replaced shall apply to the loan which replaces it.

in paying, before the grant of representation or confirmation, capital transfer tax or inheritance tax payable on the delivery of the personal representatives’ account and attributable to the value of personal property to which the deceased was beneficially entitled immediately before his death and which vests in the personal representatives or would vest in them if the property were situated in the United Kingdom; or

in paying off another loan interest on which would have been eligible for that relief by virtue of this section if the loan had not been paid off (on the assumption, if the loan was free of interest, that it carried interest);

references to capital transfer tax or inheritance tax include any interest payable on that tax; and

references to interest in respect of a period ending within a given time apply whether or not interest continues to run after that time.

that the loan was made before 9th March 1999;

that the loan was made as part of a scheme under which not less than nine-tenths of the proceeds of the loan were applied to the purchase by the person to whom it was made of an annuity ending with his life or with the life of the survivor of two or more persons (“the annuitants”) who include the person to whom the loan was made;

that at the time the loan was made the person to whom it was made or each of the annuitants had attained the age of 65 years;

that the loan was secured on land in the United Kingdom or the Republic of Ireland and the person to whom it was made or one of the annuitants owns an estate or interest in that land; and

that, if the loan was made after 26th March 1974, the person to whom it was made or each of the annuitants F28used the land on which it was secured as his only or main residence immediately before 9th March 1999 .

a loan made on or after 9th March 1999 was made in pursuance of an offer made by the lender before that date, and

the offer was either in writing or evidenced by a note or memorandum made by the lender before that date,

the new loan was made on or after the day on which the Finance Act 1999 was passed;

the new loan was made as part of a scheme (“the scheme”) under which the whole or any part of the proceeds of the loan was used to defray money applied in paying off another loan (“the old loan”); and

the conditions in subsection (1) above were, or were treated by virtue of this subsection as, satisfied with respect to the old loan.

the person to whom the loan was made, or any of the annuitants, ceased to use the land as his only or main residence at a time falling within the period of twelve months ending with 8th March 1999, and

the intention at that time of the person to whom the loan was made, or each of the annuitants owning an estate or interest in the land, was to take steps, before the end of the period of twelve months after the day on which the land ceased to be so used, with a view to the disposal of his estate or interest.

the date when the debt was incurred;

the amount of the debt when incurred;

the interest paid in the year of assessment for which the claim is made (or, in the case of relief by virtue of section F61. . . 364(2), the year of assessment for which the claim would be made but for an insufficiency of income); and

the name and address of the debtor.

in connection with the application of money, and

on the occasion of, or within what is in the circumstances a reasonable time from, the application of the money;

purchase and resale arrangements involved the making of a loan, and

alternative finance return were interest.

that the company is not resident in the United Kingdom; and

that the interest cannot be taken into account in computing corporation tax chargeable on the company.

in respect of the payment of that interest; or

in respect of interest on the same debt or liability which is paid in any year of assessment for which that computation is relevant.

that interest shall not be taken into account in the computation of F66profits or losses for the purposes of F65Schedule A or Case I or II of Schedule D for any year of assessment; and

interest on that debt or liability shall not be taken into account in that computation for any year of assessment for which the interest so paid could have been taken into account but for the relief.