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

Restriction on relief where cash basis applies 384B 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.