# Income Tax Act 2007, Section 384B: Restriction on relief where cash basis applies

Extent: E+W+S+N.I.

(1) 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 carried on a UK property business or overseas property business the profits of which are calculated on the cash basis for the tax year (see section 271D of ITTOIA 2005).
(2) A loan is a “relevant loan” if—
(a) it is a loan to which section 388 applies (loan to buy plant or machinery for partnership use), or
(b) 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.

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Source: https://www.legislation.gov.uk/ukpga/2007/3/section/384B (the official version)
Page: https://openlegislation.uk/income-tax-act-2007/section-384B
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.