Part 8Other reliefs
Chapter 1Interest payments
General and supplementary
408Replacement loans
1
This section applies to a replacement loan.
2
In subsection (1) “replacement loan” means a loan to which section 392, 396, 398 or 401 applies because the loan is used in repaying another loan (“the replaced loan”) to which that section applies.
3
This Chapter, except for sections 385 and 386, applies to the replacement loan as if that loan and the replaced loan were a single loan (subject to subsection (5)).
4
Accordingly, any restriction under section 406 (effect of recovery of capital in the case of some loans) which applies to the replaced loan applies to the replacement loan.
5
But this Chapter, except for sections 385 and 386, applies as if references to the use of the loan were references to the use of the original loan.