Section 178 — Income Tax (Earnings and Pensions) Act 2003: Exception for loans where interest qualifies for tax relief

Exception for loans where interest qualifies for tax relief 178 A loan is not a taxable cheap loan in relation to a particular tax year if, assuming interest is paid on the loan for that year (whether or not it is in fact paid), the whole of that interest—

a is eligible for relief under section 353 of ICTA or section 383 of ITA 2007 (relief for interest payments) , b would be eligible for relief under section 353 of ICTA but for the fact that it is a payment of relevant loan interest to which section 369 of ICTA applies (mortgage interest payable under deduction of tax),

c is deductible in computing the amount of the profits to be charged to tax in respect of a trade, profession or vocation carried on wholly or partly in the United Kingdom by the person to whom the loan is made, or d is deductible in computing the amount of the profits to be charged to tax in respect of a UK property business (within the meaning of Chapter 2 of Part 3 of ITTOIA carried on by that person. 2005 or Chapter 2 of Part 4 of CTA 2009)