(1)Interest on a loan within section 388(1) is eligible for relief if conditions A and B are met.
(2)Condition A is that the interest is paid by an individual who is a member of the partnership referred to in section 388(2).
(3)Condition B is that the interest falls due and payable not later than 3 years after the end of the period of account in which the loan was made.
(4)If the machinery or plant is in use partly for the purposes of the trade, profession or ordinary property business carried on by the partnership referred to in section 388(2) (“trade purposes”) and partly for other purposes, only part of the interest is eligible for relief.
(5)That part is such part as it is just and reasonable to attribute to trade purposes, having regard to all the relevant circumstances and, in particular, to the extent of the use for other purposes.