Part 6Exempt income

Chapter 9Other income

Interest only income

753Interest on repayment of student loan

(1)

No liability to income tax arises in respect of interest if—

(a)

it is paid to a person to whom a student loan has been made, and

(b)

it relates to an amount repaid to the person after being recovered from the person in respect of the loan.

(2)

In this section “student loan” means a loan made under—

  • section 22 of the Teaching and Higher Education Act 1998 (c. 30),

  • section 73(f) of the Education (Scotland) Act 1980 (c. 44), or

  • Article 3 of the Education (Student Support) (Northern Ireland) Order 1998 (S.I. 1998/1760 (N.I. 14)).