PART IX ANNUAL PAYMENTS AND INTEREST
Relief for payments of interest (excluding MIRAS)
353 General provision.
F1(1)
Where a person pays interest in any year of assessment, that person, if he makes a claim to the relief, shall for that year of assessment be entitled (subject to F2. . . F3section 52 of ITTOIA 2005) to relief in accordance with this section in respect of so much (if any) of the amount of that interest as is eligible for relief under this section by virtue of F4section 365.
F5F6(1A)
Where a person is entitled for a year of assessment to relief under this section in respect of an amount of interest which is eligible for relief by virtue of section 365, the relief is given as a tax reduction for that tax year.
(1AA)
The amount of the tax reduction is 23% of the amount of the interest.
(1AB)
The tax reduction is given effect at Step 6 of the calculation in section 23 of ITA 2007.
(1B)
F7. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(1C)
F8. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(1D)
F8. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(1E)
Where any person is entitled for any year of assessment to relief F9. . . in respect of any amount of interest as is eligible for that relief partly as mentioned in subsection (1A) above and partly as mentioned in F10section 383 of ITA 2007 (relief for interest payments), that amount of interest shall be apportioned between the cases to which each of F11those provisions applies without regard to what parts of the total amount borrowed remain outstanding but according to F12. . . —
(a)
the proportions of the total amount borrowed which were applied for different purposes; F13. . .
(b)
F13. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F14and subsection (1A) above or section 383 of ITA 2007 shall apply accordingly to the case in which that subsection or section applies.
(1F)
F15. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(1G)
F15. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(1H)
F15. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(2)
M1This section does not apply to a payment of relevant loan interest to which section 369 applies.
(3)
M2Relief under this section shall not be given in respect of—
(a)
interest on a debt incurred by overdrawing an account or by debiting the account of any person as the holder of a credit card or under similar arrangements; or
(b)
where interest is paid at a rate in excess of a reasonable commercial rate, so much of the interest as represents the excess.
(4)
F16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(5)
F16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .