SCHEDULE 7
PART IV. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F118
If, in the case of the employee, there is a home loan in any year and that is a year for which—
(a)
he is liable to income tax at a rate higher than basic rate or to tax chargeable in respect of excess liability (whether or not by virtue of this Part of this Schedule), but
(b)
he would not have been so liable apart from any home loans, and
(c)
there is in his case a nominal element,
then, in computing his liability to income tax for that year, the amount which falls to be treated as emoluments under section 160(1) in consequence of the operation of paragraph 15 above (or, if more than one, the aggregate of those amounts) shall be taken to be the highest part of the income charged to tax, and an amount equal to the nominal element shall be taken to be the lowest portion of that part.