359 Loan to buy machinery or plant.U.K.
(1)M1Where an individual is a member of a partnership which, under [F1section 264 of the Capital Allowances Act], is entitled to a capital allowance or liable to a balancing charge for [F2any period of account in respect of plant or machinery] belonging to the individual, any interest paid by him in [F3that period of account] on a loan to defray money applied as capital expenditure on the provision of [F4that plant or machinery] is eligible for relief under section 353, except interest falling due and payable more than three years after the end of [F5the period of account] in which the debt was incurred.
(2)M2Where the machinery or plant is in use partly for the purposes of the trade, profession or vocation carried on by the partnership and partly for other purposes, such part only of the interest is eligible for relief under section 353 as is just and reasonable to attribute to the purposes of the trade, profession or vocation, having regard to all the relevant circumstances and, in particular, to the extent of the use for those other purposes.
(3)M3Where the holder of an office or employment—
(a)is under [F6Part 2 of the Capital Allowances Act] entitled to a capital allowance or liable to a balancing charge, (or would be so entitled or liable but for some contribution made by the employer), for any year of assessment in respect of [F7plant or machinery] belonging to him and in use for the purposes of the office or employment; and
(b)pays interest in that year on a loan to defray money applied as capital expenditure on the provision of that [F8plant or machinery];
the interest so paid is eligible for relief under section 353 unless it is interest falling due and payable more than three years after the end of the year of assessment in which the debt was incurred.
(4)M4Where the machinery or plant is in use partly for the purposes of the office or employment and partly for other purposes, such part only of the interest is eligible for relief under section 353 as it is just and reasonable to attribute to the purposes of the office or employment, having regard to all the relevant circumstances and, in particular, to the extent of the use for those other purposes.
Textual Amendments
F1Words in s. 359(1) substituted (with effect in accordance with s. 579(1) of the amending Act) by Capital Allowances Act 2001 (c. 2), Sch. 2 para. 27(1)(a) (with Sch. 3)
F2Words in s. 359(1) substituted (with effect in accordance with s. 579(1) of the amending Act) by Capital Allowances Act 2001 (c. 2), Sch. 2 para. 27(1)(b) (with Sch. 3)
F3Words in s. 359(1) substituted (with effect in accordance with s. 579(1) of the amending Act) by Capital Allowances Act 2001 (c. 2), Sch. 2 para. 27(1)(c) (with Sch. 3)
F4Words in s. 359(1) substituted (with effect in accordance with s. 579(1) of the amending Act) by Capital Allowances Act 2001 (c. 2), Sch. 2 para. 27(1)(d) (with Sch. 3)
F5Words in s. 359(1) substituted (with effect in accordance with s. 579(1) of the amending Act) by Capital Allowances Act 2001 (c. 2), Sch. 2 para. 27(1)(e) (with Sch. 3)
F6Words in s. 359(3)(a) substituted (with effect in accordance with s. 579(1) of the amending Act) by Capital Allowances Act 2001 (c. 2), Sch. 2 para. 27(2)(a) (with Sch. 3)
F7Words in s. 359(3)(a) substituted (with effect in accordance with s. 579(1) of the amending Act) by Capital Allowances Act 2001 (c. 2), Sch. 2 para. 27(2)(a) (with Sch. 3)
F8Words in s. 359(3)(b) substituted (with effect in accordance with s. 579(1) of the amending Act) by Capital Allowances Act 2001 (c. 2), Sch. 2 para. 27(2)(b) (with Sch. 3)
Marginal Citations
M1Source-1972 Sch.9 10; 1974 Sch.1 1
M2Source-1972 Sch.9 11; 1974 Sch.1 1
M3Source-1972 Sch.9 12; 1974 Sch. 1 1
M4Source-1972 Sch.9 13; 1974 Sch.1 1