{
  "url": "https://openlegislation.uk/finance-act-1995/schedule-22/paragraph-5",
  "json_url": "https://openlegislation.uk/finance-act-1995/schedule-22/paragraph-5.json",
  "legislation": "ukpga/1995/4",
  "legislation_title": "Finance Act 1995",
  "legislation_url": "https://openlegislation.uk/finance-act-1995",
  "path": "schedule/22/paragraph/5",
  "kind": "paragraph",
  "number": "5",
  "heading": null,
  "text": "(1) This paragraph applies where, in the case of a trade or profession carried on by any person in partnership with other persons—\n(a) paragraph 52 of Schedule 2 to ITTOIA 2005 applies with or without the modification made by paragraph 3(2) above;\n(b) a claim is made under section 383 of the Income Tax Act 2007 (relief for interest payments) in respect of interest on a loan to defray money contributed or advanced by him (“the partner”) to the partnership; and\n(c) sub-paragraph (2) below applies to any of the money so contributed or advanced.\n(2) This sub-paragraph applies to money so contributed or advanced unless it was contributed or advanced wholly or mainly—\n(a) for bona fide commercial reasons; or\n(b) for a purpose other than the reduction of the partnership’s borrowings for a relevant period.\n(3) Subject to sub-paragraph (4) below, paragraph 52 of Schedule 2 to ITTOIA 2005 shall have effect as if the reference to the transitional overlap profit were a reference to the difference between that profit and the amount of interest paid by the partner in respect of the transitional overlap period on money to which sub-paragraph (2) above applies.\n(4) Sub-paragraph (3) above does not apply where—\n(a) the loan was made before 1st April 1994; or\n(b) the aggregate amount of interest paid as mentioned in that sub-paragraph is less than such amount as may be prescribed by regulations made by the Board.\n(5) In this paragraph—\n“relevant period” means a period the whole or part of which falls within the transitional overlap period;\n“the transitional overlap period” has the same meaning as in paragraph 3 above;\n“the transitional overlap profit” means the amount mentioned in paragraph 52(2) of Schedule 2 to ITTOIA 2005 (whether having effect with or without the modification made by paragraph 3(2) above).",
  "extent": "E+W+S+N.I.",
  "status": null,
  "version": "current",
  "annotations": [
    {
      "type": "F",
      "label": "F1",
      "text": "Words in Sch. 22 para. 5(1) substituted (6.4.2005) by Income Tax (Trading and Other Income) Act 2005 (c. 5), s. 883(1), Sch. 1 para. 484(5)(a) (with Sch. 2)"
    },
    {
      "type": "F",
      "label": "F2",
      "text": "Words in Sch. 22 para. 5(1)(b) substituted (6.4.2007) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 1 para. 370(2) (with Sch. 2)"
    },
    {
      "type": "F",
      "label": "F3",
      "text": "Words in Sch. 22 para. 5(3) substituted (6.4.2005) by Income Tax (Trading and Other Income) Act 2005 (c. 5), s. 883(1), Sch. 1 para. 484(5)(b) (with Sch. 2)"
    },
    {
      "type": "F",
      "label": "F4",
      "text": "Words in Sch. 22 para. 5(5) substituted (6.4.2005) by Income Tax (Trading and Other Income) Act 2005 (c. 5), s. 883(1), Sch. 1 para. 484(5)(c) (with Sch. 2)"
    }
  ],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/ukpga/1995/4/schedule/22/paragraph/5",
    "retrieved_at": "2026-10-29T09:33:25.980862+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}