Section 384B Restriction on relief where cash basis appliesF1
United Kingdom
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 F2carried on F3a UK property business or overseas property business F4the profits of which are calculated on the cash basis for the tax year (see section 271D of ITTOIA 2005).
A loan is a “relevant loan” if—
it is a loan to which section 388 applies (loan to buy plant or machinery for partnership use), or
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.
Annotations
Textual amendments
- F1
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)
- F2
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)
- F3
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
- F4
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)