{
  "url": "https://openlegislation.uk/income-and-corporation-taxes-act-1988/section-376",
  "json_url": "https://openlegislation.uk/income-and-corporation-taxes-act-1988/section-376.json",
  "legislation": "ukpga/1988/1",
  "legislation_title": "Income and Corporation Taxes Act 1988",
  "legislation_url": "https://openlegislation.uk/income-and-corporation-taxes-act-1988",
  "path": "section/376",
  "kind": "section",
  "number": "376",
  "heading": "Qualifying borrowers and qualifying lenders.",
  "text": "(1) Subject to subsection (2) below, an individual is a qualifying borrower with respect to the interest on any loan.\n(2) In relation to interest paid at a time when the borrower or the borrower’s husband or wife holds an office or employment which would, but for some special exemption or immunity from tax, be a taxable employment under Part 2 of ITEPA 2003 (as defined by section 66(3) of that Act), the borrower is not a qualifying borrower.\n(3) In subsection (2) above references to the borrower’s husband or wife do not include references to a separated husband or wife . . . .\n(4) The following bodies are qualifying lenders:—\n(a) a building society;\n(b) a local authority;\n(c) the Bank of England;\n(d) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .\n(e) a person who has permission under Part 4A of the Financial Services and Markets Act 2000 to effect or carry out contracts of long-term insurance;\n(f) any company to which property and rights belonging to a trustee savings bank were transferred by section 3 of the Trustee Savings Bank Act 1985;\n(g) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .\n(h) a development corporation within the meaning of the New Towns Act 1981 or the New Towns (Scotland) Act 1968;\n(j) the Homes and Communities Agency;\n(ja) the Greater London Authority so far as exercising its housing or regeneration functions or its new towns and urban development functions;\n(k) the Regulator of Social Housing,\n(ka) the Secretary of State if the loan is made by him under section 79 of the Housing Associations Act 1985;\n(l) the Northern Ireland Housing Executive;\n(m) the Scottish Special Housing Association;\n(n) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .\n(o) the Church of England Pensions Board;\n(p) any body which is for the time being registered under section 376A.\n(4A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .\n(5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .\n(6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .",
  "extent": "E+W+S+N.I.",
  "status": null,
  "version": "current",
  "annotations": [
    {
      "type": "F",
      "label": "F1",
      "text": "Words in s. 376(2) substituted (6.4.2003 with effect in accordance with s. 723(1) of the amending Act) by Income Tax (Earnings and Pensions) Act 2003 (c. 1), Sch. 6 para. 52 (with Sch. 7)"
    },
    {
      "type": "F",
      "label": "F2",
      "text": "Words in s. 376(3) repealed (with effect in accordance with Sch. 4 para. 18(5), Sch. 20 Pt. 3(7) Note 4 of the repealing Act) by Finance Act 1999 (c. 16), Sch. 4 para. 11(a), Sch. 20 Pt. 3(7)"
    },
    {
      "type": "F",
      "label": "F3",
      "text": "S. 376(4)(d) repealed (26.3.2001) by The Postal Services Act 2000 (Consequential Modifications No. 1) Order 2001 (S.I. 2001/1149), arts. 1(2), 3(2), Sch. 2"
    },
    {
      "type": "F",
      "label": "F4",
      "text": "S. 376(4)(e) substituted (1.12.2001 in accordance with art. 1(2)(a) of the amending Order) by The Financial Services and Markets Act 2000 (Consequential Amendments) (Taxes) Order 2001 (S.I. 2001/3629), art. 23(2)(a)"
    },
    {
      "type": "F",
      "label": "F5",
      "text": "Words in s. 376(4)(e) substituted (1.4.2013) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 18 para. 58(3) (with Sch. 20); S.I. 2013/423, art. 3, Sch."
    },
    {
      "type": "F",
      "label": "F6",
      "text": "S. 376(4)(g) omitted (1.12.2001 in accordance with art. 1(2)(a) of the amending Order) by virtue of The Financial Services and Markets Act 2000 (Consequential Amendments) (Taxes) Order 2001 (S.I. 2001/3629), art. 23(2)(b)"
    },
    {
      "type": "F",
      "label": "F7",
      "text": "S. 376(4)(j) substituted (1.12.2008) by Housing and Regeneration Act 2008 (c. 17), s. 325(1), Sch. 8 para. 42; S.I. 2008/3068, art. 2(1)(w) (with arts. 6-13)"
    },
    {
      "type": "F",
      "label": "F8",
      "text": "S. 376(4)(ja) inserted (1.4.2012) by Localism Act 2011 (c. 20), s. 240(2), Sch. 19 para. 24; S.I. 2012/628, art. 6(1) (with arts. 9-20)"
    },
    {
      "type": "F",
      "label": "F9",
      "text": "S. 376(4)(k) substituted (1.4.2010) by Housing and Regeneration Act 2008 (c. 17), s. 325(1), Sch. 9 para. 12; S.I. 2010/862, art. 2 (with Sch.)"
    },
    {
      "type": "F",
      "label": "F10",
      "text": "S. 376(4)(ka) substituted (1.11.1998) by Government of Wales Act 1998 (c. 38), ss. 140(2), 158(1), Sch. 16 para. 55; S.I. 1998/2244, art. 5"
    },
    {
      "type": "F",
      "label": "F11",
      "text": "S. 376(4)(n) repealed (1.10.1998) by Government of Wales Act 1998 (c. 38), ss. 152, 158(1), Sch. 18 Pt. 4; S.I. 1998/2244, art. 4"
    },
    {
      "type": "F",
      "label": "F12",
      "text": "S. 376(4)(p) substituted (1.12.2001 in accordance with art. 1(2)(a) of the amending Order) by The Financial Services and Markets Act 2000 (Consequential Amendments) (Taxes) Order 2001 (S.I. 2001/3629), art. 23(2)(c)"
    },
    {
      "type": "F",
      "label": "F13",
      "text": "S. 376(4A) inserted (19.2.1993) by Finance (No. 2) Act 1992 (c. 48), s. 56, Sch. 9 paras. 3(3), 22; S.I. 1993/236, art. 2"
    },
    {
      "type": "F",
      "label": "F14",
      "text": "S. 376(4A) omitted (1.12.2001 in accordance with art. 1(2)(a) of the amending Order) by virtue of The Financial Services and Markets Act 2000 (Consequential Amendments) (Taxes) Order 2001 (S.I. 2001/3629), art. 23(3)"
    },
    {
      "type": "F",
      "label": "F15",
      "text": "S. 376(5) repealed (3.5.1994) by Finance Act 1994 (c. 9), s. 142(1)(b), Sch. 26 Pt. 5(19)"
    },
    {
      "type": "F",
      "label": "F16",
      "text": "S. 376(6) repealed (with effect in accordance with Sch. 4 para. 18(5), Sch. 20 Pt. 3(7) Note 4 of the repealing Act) by Finance Act 1999 (c. 16), Sch. 4 para. 11(b), Sch. 20 Pt. 3(7)"
    },
    {
      "type": "M",
      "label": "M1",
      "text": "Source-1982 Sch.7 13"
    },
    {
      "type": "M",
      "label": "M2",
      "text": "Source-1982 Sch.7 14(1); 1983 s.17(3)"
    },
    {
      "type": "M",
      "label": "M3",
      "text": "1985 c. 50."
    },
    {
      "type": "M",
      "label": "M4",
      "text": "1981 c.64."
    },
    {
      "type": "M",
      "label": "M5",
      "text": "1968 c. 16."
    },
    {
      "type": "M",
      "label": "M6",
      "text": "1985 c. 69."
    }
  ],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/ukpga/1988/1/section/376",
    "retrieved_at": "2026-10-29T09:49:54.309394+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."
}