SCHEDULE 28AA Provision not at arm’s length
Certain interest not to be regarded as chargeable
6E
Where—
(a)
interest is paid by any person under the actual provision,
(b)
paragraph 1(2) above applies in relation to the actual provision,
(c)
the amount of interest that would have been payable under the arm’s length provision is less than the amount of interest paid under the actual provision (or there would not have been any interest payable),
(d)
the person receiving the interest makes a claim under paragraph 6 above or a paragraph 6C claim,
the interest paid under the actual provision, to the extent that it exceeds the amount of interest that would have been payable under the arm’s length provision, shall not be regarded as chargeable under F1. . . F2Chapter 2 of Part 4 of ITTOIA 2005F3or required to be brought into account under Part 5 of CTA 2009 as a non-trading creditF4and shall not be subject to the provisions of Part 15 of ITA 2007 (deduction of income tax at source).