Point in time view as at 17/12/2014.
Income Tax (Earnings and Pensions) Act 2003, Section 178 is up to date with all changes known to be in force on or before 06 March 2025. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations.
A loan is not a taxable cheap loan in relation to a particular tax year if, assuming interest is paid on the loan for that year (whether or not it is in fact paid), the whole of that interest—
(a)is eligible for relief under section 353 of ICTA [F1or section 383 of ITA 2007 (relief for interest payments)],
(b)would be eligible for relief under [F2section 353 of ICTA] but for the fact that it is a payment of relevant loan interest to which section 369 of ICTA applies (mortgage interest payable under deduction of tax),
(c)is deductible in computing the amount of the profits to be charged [F3to tax] in respect of a trade, profession or vocation carried on [F4wholly or partly in the United Kingdom] by the person to whom the loan is made, or
(d)is deductible in computing the amount of the profits to be charged [F5to tax in respect of a UK property business [F6(within the meaning of Chapter 2 of Part 3 of ITTOIA 2005 or Chapter 2 of Part 4 of CTA 2009)]] carried on by that person.
Textual Amendments
F1Words in s. 178(a) substituted (6.4.2007) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 1 para. 431(a) (with Sch. 2)
F2Words in s. 178(b) substituted (6.4.2007) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 1 para. 431(b) (with Sch. 2)
F3Words in s. 178(c) substituted (6.4.2005) by Income Tax (Trading and Other Income) Act 2005 (c. 5), s. 883(1), Sch. 1 para. 587(a)(i) (with Sch. 2)
F4Words in s. 178(c) inserted (6.4.2005) by Income Tax (Trading and Other Income) Act 2005 (c. 5), s. 883(1), Sch. 1 para. 587(a)(ii) (with Sch. 2)
F5Words in s. 178(d) substituted (6.4.2005) by Income Tax (Trading and Other Income) Act 2005 (c. 5), s. 883(1), Sch. 1 para. 587(b) (with Sch. 2)
F6Words in s. 178(d) substituted (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 1 para. 550 (with Sch. 2 Pts. 1, 2)
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