{
  "url": "https://openlegislation.uk/income-tax-act-2007/section-412I",
  "json_url": "https://openlegislation.uk/income-tax-act-2007/section-412I.json",
  "legislation": "ukpga/2007/3",
  "legislation_title": "Income Tax Act 2007",
  "legislation_url": "https://openlegislation.uk/income-tax-act-2007",
  "path": "section/412I",
  "kind": "section",
  "number": "412I",
  "heading": "Meaning of “loan”, “peer-to-peer loan” and related terms",
  "text": "(1) This section applies for the purposes of this Chapter.\n(2) “Loan” means a loan of money which—\n(a) is made on genuine commercial terms, and\n(b) is not part of a scheme or arrangement the main purpose or one of the main purposes of which is to obtain a tax advantage (within the meaning given by section 208 of the FA 2013).\n(3) A loan is a “peer-to-peer loan” only if it meets—\n(a) Condition A or B, and\n(b) Condition C.\n(4) Condition A is that the person who made the loan is—\n(a) an individual,\n(b) a partnership which consists of—\n(i) two or three persons, and\n(ii) at least one person who is not a body corporate, or\n(c) an unincorporated body of persons which—\n(i) is not a partnership, and\n(ii) consists of at least one person who is not a body corporate.\n(5) Condition B is that—\n(a) the recipient of the loan is a person within paragraph (a), (b) or (c) of subsection (4), and\n(b) the loan is a personal or small loan.\n(6) Condition C is that, assuming interest were paid on the loan, the person who made the loan would (except for this Chapter) be liable for income tax charged on the interest.\n(7) “Personal loan” means a loan which is not used wholly or predominantly for the purposes of a business carried on, or intended to be carried on, by the recipient of the loan.\n(8) “Small loan” means a loan of £25,000 or less.",
  "extent": null,
  "status": null,
  "version": "current",
  "annotations": [
    {
      "type": "F",
      "label": "F1",
      "text": "Pt. 8 Ch. 1A inserted (15.9.2016) by Finance Act 2016 (c. 24), s. 32(2)"
    }
  ],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/ukpga/2007/3/section/412I",
    "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."
}