[F1272BMeaning of “costs of a dwelling-related loan”U.K.
(1)Subsections (2) to (5) apply for the purposes of section 272A.
(2)“Dwelling-related loan”, in relation to a property business, means so much of an amount borrowed for purposes of the business as is referable (on a just and reasonable apportionment) to so much of the business as is carried on for the purpose of generating income from—
(a)land consisting of a dwelling-house or part of a dwelling-house, or
(b)an estate, interest or right in or over land within paragraph (a),
but see subsections (3) and (4).
(3)Anything that in the course of a property business is done for creating (by construction or adaptation) a dwelling-house, or part of a dwelling-house, from which income is to be generated is, for the purposes of subsection (2), to be treated as done for the purpose mentioned in that subsection.
(4)An amount borrowed for purposes of a property business is not a dwelling-related loan so far as the amount is referable (on a just and reasonable apportionment) to so much of the property business as consists of the commercial letting of furnished holiday accommodation.
(5)“Costs”, in relation to a dwelling-related loan, means—
(a)interest on the loan,
(b)an amount in connection with the loan that, for the person receiving or entitled to the amount, is a return in relation to the loan which is economically equivalent to interest, or
(c)incidental costs of obtaining finance by means of the loan.
(6)Section 58(2) to (4) (meaning of “incidental costs of obtaining finance”) apply for the purposes of subsection (5)(c).
(7)A reference in this section to a “dwelling-house” includes any land occupied or enjoyed with it as its garden or grounds.]
Textual Amendments
F1Ss. 272A, 272B inserted (18.11.2015) by Finance (No. 2) Act 2015 (c. 33), s. 24(2)