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Modifications etc. (not altering text)
C1Pt. 14 Ch. 1 (ss. 590-612) modified (31.3.1995) by Judicial Pensions and Retirement Act 1993 (c. 8), ss. 18, 19(4), 31(2); S.I. 1995/631, art. 2
Valid from 31/07/1998
(1)This section applies where a person is chargeable to tax under section 596A in any year of assessment on an amount which consists of or includes an amount representing the cash equivalent of the benefit of a loan determined (by virtue of section 596B(1)(a)) in accordance with Part II of Schedule 7.
(2)Where this section applies, the person chargeable is treated as having paid interest on the loan of the same amount as the cash equivalent so determined.
(3)The interest is treated as paid for all the purposes of the Tax Acts (other than those relating to the charge under section 596A) but not so as to make it—
(a)income of the person making the loan, or
(b)relevant loan interest to which section 369 applies (mortgage interest payable under deduction of tax).
(4)The interest is treated as accruing during and paid at the end of the year of assessment or, if different, the period in that year during which the loan is outstanding.]
Textual Amendments
F1S. 596C inserted (with effect in accordance with s. 93(4) of the amending Act) by Finance Act 1998 (c. 36), s. 93(3)