Part 8Other reliefs

Chapter 1Interest payments

The relief: introduction

385General provisions about loans

1

References in this Chapter to a loan being used or used in any way—

a

are references to the money lent being applied or, as the case may be, applied in that way, and

b

except in section 403 include references to a loan being used to meet expenditure already incurred or, as the case may be, already incurred on such a use.

2

Sections 392, 396, 398, 401 and 403 apply to a loan only if it is made—

a

in connection with the use of money, and

b

on the occasion of its use or within what is in the circumstances a reasonable time from its use.

3

Those sections apply to a loan only if the loan is used as mentioned in those sections without first having been used for another purpose.

4

For the purposes of this Chapter the giving of credit for any money due from the purchaser under a sale is treated as the making of a loan used by the purchaser in making the purchase.