787 Restriction of relief for payments of interest.U.K.
M1(1)Relief shall not be given to any person under any provision of the [F1Income Tax Acts] in respect of any payment of interest if a scheme has been effected or arrangements have been made (whether before or after the time when the payment is made) such that the sole or main benefit that might be expected to accrue to that person from the transaction under which the interest is paid was the obtaining of a reduction in tax liability by means of any such relief.
[F2(1A)F3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .]
(2)In this section “relief” means relief by way of deduction in computing profits or gains or deduction or set off against income F4. . . .
[F5(3)F6. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .]
Textual Amendments
F1Words in s. 787(1) substituted (1.4.2009 with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), Sch. 1 para. 242(2) (with Sch. 2 Pts. 1, 2)
F2S. 787(1A) inserted (with effect in accordance with s. 82(2) of the amending Act) by Finance Act 2002 (c. 23), Sch. 25 para. 53(2)
F3S. 787(1A) repealed (1.4.2009 with effect in accordance with s. 1329(1) of the repealing Act) by Corporation Tax Act 2009 (c. 4), Sch. 1 para. 242(3), Sch. 3 Pt. 1 (with Sch. 2 Pts. 1, 2)
F4Words in s. 787(2) repealed (1.4.2009 with effect in accordance with s. 1329(1) of the repealing Act) by Corporation Tax Act 2009 (c. 4), Sch. 1 para. 242(4), Sch. 3 Pt. 1 (with Sch. 2 Pts. 1, 2)
F5S. 787(3) substituted (with effect in accordance with s. 82(2) of the amending Act) by Finance Act 2002 (c. 23), Sch. 25 para. 53(3)
F6S. 787(3) repealed (1.4.2009 with effect in accordance with s. 1329(1) of the repealing Act) by Corporation Tax Act 2009 (c. 4), Sch. 1 para. 242(5), Sch. 3 Pt. 1 (with Sch. 2 Pts. 1, 2)
Modifications etc. (not altering text)
C1S. 787 extended (with effect in accordance with s. 56 of the affecting Act) by Finance Act 2005 (c. 7), Sch. 2 para. 8
Marginal Citations
M1Source—1976 s.38