Part 8

Other reliefs
Chapter 1

Interest payments

The relief: introduction

Restriction on relief where cash basis applies
384B
1
Relief is not to be given under this Chapter for a tax year for interest paid by a person on a relevant loan if the partnership to which the loan relates
carried on
a
UK
property business or overseas property business
the profits of which
are calculated on the cash basis for the tax year (see section 271D of
ITTOIA
2005).
2
A loan is a “relevant loan” if—
a
it is a loan to which section 388 applies (loan to buy plant or machinery for partnership use), or
b
it is a loan to which section 398 applies (loan to invest in partnership) and which is not used for purchasing a share in a partnership.
Words in s. 384B(1) inserted (with effect in accordance with Sch. 2 para. 64 of the amending Act) by Finance (No. 2) Act 2017 (c. 32), Sch. 2 para. 63
S. 384B inserted (with effect in accordance with Sch. 4 paras. 56, 57 of the amending Act) by Finance Act 2013 (c. 29), Sch. 4 para. 55(3)
Words in s. 384B(1) substituted (6.4.2024 for the tax year 2024-25 and subsequent tax years) by Finance Act 2024 (c. 3), Sch. 10 paras. 8(b)(i), 47 (with Sch. 10 paras. 48-50)
Words in s. 384B(1) substituted (6.4.2024 for the tax year 2024-25 and subsequent tax years) by Finance Act 2024 (c. 3), Sch. 10 paras. 8(b)(ii), 47 (with Sch. 10 paras. 48-50)