Section 390 — Income Tax Act 2007: Loan to buy plant or machinery for employment use

Loan to buy plant or machinery for employment use 390 1 This section applies to a loan that is used for capital expenditure on the provision of plant or machinery to which subsection (2) applies.

2 This subsection applies to plant or machinery if—

a it is in use for the purposes of an office or employment held by an individual in the tax year, b the plant or machinery belongs to the individual, and c the individual is entitled to a capital allowance or liable to a balancing charge in respect of it under Part 2 of CAA 2001 for the tax year.

3 An individual is treated as entitled to a capital allowance or liable to a balancing charge in respect of plant or machinery for a tax year (“ the later year ”) for the purposes of subsection (2)(c) if—

a the individual has been so entitled or liable for a previous tax year, and b no disposal value has been brought into account in respect of it in the later year or any earlier year.

4 An individual is also treated as so entitled or liable for the purposes of this section if the individual would be so entitled or liable but for a contribution made by the individual's employer.