Income Tax Act 2007

[F1412ESubsequent recovery of peer-to-peer loansU.K.
This section has no associated Explanatory Notes

(1)This section applies where—

(a)any amount of the principal of a loan has been deducted under this Chapter in calculating a person's net income for a tax year, and

(b)the person subsequently recovers that amount or any part of it.

(2)The amount recovered is to be treated for the purposes of this Act as if it were interest on the loan paid to the person at the time it was recovered.

(3)For the purposes of this section, a person is to be treated as recovering an amount if the person (or any other person at his or her direction) receives any money or money's worth—

(a)in satisfaction of the person's right to recover that amount, or

(b)in consideration of the person's assignment of the right to recover it;

and where a person assigns such a right otherwise than by way of a bargain made at arm's length the person shall be treated as receiving money or money's worth equal to the market value of the right at the time of the assignment.]

Textual Amendments