Part 8Other reliefs
F1CHAPTER 1AIrrecoverable peer-to-peer loans
The relief
412CClaims for additional relief: carry-forward relief
1
A person (“L”) may make a claim for relief under this section if—
a
L is entitled to relief under section 412A in respect of any outstanding amount of the principal of a loan (“the relevant loan”), but
b
in the tax year in relation to which L is entitled to that relief (“the relevant year”)—
i
L has no income of the kind mentioned in section 412A(4) or section 412B(3) from which to deduct the outstanding amount, or
ii
L has insufficient income of that kind to enable the outstanding amount to be deducted in full under those sections.
2
The claim is for the outstanding amount or (in a case within subsection (1)(b)(ii)) the part of the outstanding amount not capable of being deducted under sections 412A and 412B to be deducted under this section in calculating L's net income for the four tax years following the relevant year.
3
The deduction under this section is to be made only from income arising from the payment to L of interest on—
a
the relevant loan, and
b
any other loan within subsection (4) or (5).
4
A loan is within this subsection if—
a
it is a peer-to-peer loan made by L, and
b
it was made through an operator (whether or not that operator is the operator through whom the relevant loan was made).
5
A loan is within this subsection if—
a
the loan was made by someone other than L,
b
the right to receive interest on the loan has been assigned to L,
c
that right was assigned through an operator (whether or not that operator is the operator through whom the relevant loan was made), and
d
either—
i
L is a person within paragraph (a), (b) or (c) of section 412I(4), or
ii
the recipient of the loan is a person within one of those paragraphs and the loan is a personal or small loan.
6
This section needs to be read with section 412D (how relief works).
Pt. 8 Ch. 1A inserted (15.9.2016) by Finance Act 2016 (c. 24), s. 32(2)