Part 6Exempt income

Chapter 9Other income

Interest only income

753Interest on repayment of student loan

1

No liability to income tax arises in respect of interest if—

a

it is paid to a person to whom a student loan has been made, and

b

it relates to an amount repaid to the person after being recovered from the person in respect of the loan.

2

In this section “student loan” means a loan made under—

  • section 22 of the Teaching and Higher Education Act 1998 (c. 30),

  • section 73(f) of the Education (Scotland) Act 1980 (c. 44), or

  • Article 3 of the Education (Student Support) (Northern Ireland) Order 1998 (S.I. 1998/1760 (N.I. 14)).