M1Where a person sustains a loss on the exercise or disposal of a right to receive any amount, being a right to which section 56(2) applies, in a case where—
(a)if a profit had arisen from that exercise or disposal, that profit would have been chargeable to tax by virtue of section 56(2), and
(b)he is chargeable to tax under Schedule C or D in respect of interest payable on that amount,
then the amount of that interest shall be included in the amounts against which [F1the amount of his loss may be set off in pursuance of a claim under section 392 or, as the case may be, against which the amount of his loss may be set off under section 396].
Textual Amendments
F1Words in s. 398 substituted (27.7.1993) by 1993 c. 34, s. 120, Sch. 14 para. 8(4)
Marginal Citations
M1Source—1973 s.26(2); 1974 s.30(2)