http://www.legislation.gov.uk/ukpga/2007/3/section/809BZIIncome Tax Act 2007An Act to restate, with minor changes, certain enactments relating to income tax; and for connected purposes.texttext/xmlenStatute Law Database2026-04-23Expert Participation2026-04-06 Income Tax Act 2007s. 6B(1A)Finance Act 2026Sch. 2 para. 2s. 8(2)-(4)Income Tax Act 2007s. 788(7)Legal Services Act 2007Sch. 21 para. 161(b)s. 29 192 193s. 211(2)art. 2(h) Part 13Chapter 5B809BZI1This section applies if—athere is a type 2 finance arrangement,bthe transferor is a person within the charge to income tax, andcin accordance with generally accepted accounting practice the partnership's accounts record an amount as a finance charge in respect of the advance.2For income tax purposes the transferor may treat the amount as interest payable by the transferor on a loan.3The reference in subsection (1) to the partnership's accounts includes a reference to the transferor's accounts.4If an amount is treated as interest (“deemed interest”) under subsection (2), to find out when it is paid—atreat the payments mentioned in section 809BZF(2)(e) as consisting of amounts for repaying the advance and amounts (“the interest elements”) in respect of interest on the advance,btreat the interest elements of the payments as paid when the payments are paid, andctreat the deemed interest as paid at the times when the interest elements are treated as paid.Pt. 13 Ch. 5B restricted by 2004 c. 12, s. 196G(2)(3) (as inserted 17.7.2012 (with effect in accordance with Sch. 13 para. 3 of the amending Act) by Finance Act 2012 (c. 14), Sch. 13 para. 1 (with Sch. 13 Pt. 2))Pt. 13 Ch. 5B restricted by 2004 s. 12 s. 196I(5)(6) (as inserted 17.7.2012 (with effect in accordance with Sch. 13 para. 17 of the amending Act) by Finance Act 2012 (c. 14), Sch. 13 para. 15 (with Sch. 13 Pt. 4))Ss. 809BZF-809BZI and cross-heading inserted (with effect in accordance with s. 381(1) of the amending Act) by Taxation (International and Other Provisions) Act 2010 (c. 8), s. 381(1), Sch. 5 para. 3 (with Sch. 9 paras. 1-9, 22)Pt. 13 Ch. 5B inserted (with effect in accordance with s. 381(1) of the amending Act) by Taxation (International and Other Provisions) Act 2010 (c. 8), s. 381(1), Sch. 5 para. 2 (with Sch. 9 paras. 1-9, 22)