Part 8

Other reliefs
CHAPTER 1A

Irrecoverable peer-to-peer loans

The relief

Claims for additional relief: sideways relief
412B
1
A person (“L”) may make a claim for relief under this section if—
a
L is entitled to relief under section 412A in respect of any outstanding amount of the principal of a loan (“the relevant loan”), but
b
in the tax year in relation to which L is entitled to that relief (“
the relevant year
”)—
i
L has no income of the kind mentioned in section 412A(4) from which to deduct the outstanding amount, or
ii
L has insufficient income of that kind to enable the outstanding amount to be deducted in full under that section.
2
The claim is for the outstanding amount or (in a case within subsection (1)(b)(ii)) the part of the outstanding amount not capable of being deducted under section 412A to be deducted under this section in calculating L's net income for the relevant year.
3
The deduction under this section is to be made only from income arising from the payment to L of interest on loans within subsection (4) or (5).
4
A loan is within this subsection if—
a
it is a peer-to-peer loan made by L, and
b
it was made through an operator who is not the operator through whom the relevant loan was made.
5
A loan is within this subsection if—
a
the loan was made by someone other than L,
b
the right to receive interest on the loan has been assigned to L,
c
that right was assigned through an operator who is not the operator through whom the relevant loan was made, and
d
either—
i
L is a person within paragraph (a), (b) or (c) of section 412I(4), or
ii
the recipient of the loan is a person within one of those paragraphs and the loan is a personal or small loan.
6
The amount deducted under this section is limited in accordance with section 25(4) and (5).
Pt. 8 Ch. 1A inserted (15.9.2016) by Finance Act 2016 (c. 24), s. 32(2)