{
  "url": "https://openlegislation.uk/income-tax-act-2007/section-399",
  "json_url": "https://openlegislation.uk/income-tax-act-2007/section-399.json",
  "legislation": "ukpga/2007/3",
  "legislation_title": "Income Tax Act 2007",
  "legislation_url": "https://openlegislation.uk/income-tax-act-2007",
  "path": "section/399",
  "kind": "section",
  "number": "399",
  "heading": "Eligibility requirements for interest on loans within section 398",
  "text": "(1) Interest on a loan within section 398 to an individual is eligible for relief only if conditions A and B are met.\n(2) Condition A is that throughout the period from the use of the loan until the interest is paid the individual has been a member of the partnership otherwise than—\n(a) as a limited partner in a limited partnership registered under the Limited Partnerships Act 1907 (c. 24), or\n(b) as a member of an investment LLP.\n(3) Condition B is that in that period the individual has not recovered any capital from the partnership, apart from any amount taken into account under section 406(2) (recovered capital that is treated as a repayment of the loan).\n(4) If section 400 (film partnerships) applies in a tax year, only 40% of the interest that would otherwise be eligible for relief for that year is eligible.\n(5) For the purposes of subsection (2) an individual who is not a member of a partnership is treated as such a member if—\n(a) the partnership carries on a profession,\n(b) the individual is employed by the partnership in a senior capacity, and\n(c) the individual is allowed—\n(i) to act independently in dealing with clients of the partnership, and\n(ii) to act generally in such a way as to be indistinguishable from the partners in relations with those clients.\n(6) For the purposes of subsection (2) “investment LLP” means a limited liability partnership—\n(a) whose business consists wholly or mainly of the making of investments, and\n(b) the principal part of whose income is derived from investments,\nand whether a limited liability partnership is an investment LLP is determined for each period of account of the partnership.",
  "extent": null,
  "status": null,
  "version": "current",
  "annotations": [],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/ukpga/2007/3/section/399",
    "retrieved_at": "2026-10-29T09:13:03.599581+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."
}