[F1384BRestriction on relief where cash basis appliesU.K.
This section has no associated Explanatory Notes
(1)Relief is not to be given under this Chapter for a tax year for interest paid by a person on a relevant loan if the partnership to which the loan relates has made an election under section 25A of ITTOIA 2005 (cash basis for small businesses) for the tax year.
(2)A loan is a “relevant loan” if—
(a)it is a loan to which section 388 applies (loan to buy plant or machinery for partnership use), or
(b)it is a loan to which section 398 applies (loan to invest in partnership) and which is not used for purchasing a share in a partnership.]
Textual Amendments
F1S. 384B inserted (with effect in accordance with Sch. 4 paras. 56, 57 of the amending Act) by Finance Act 2013 (c. 29), Sch. 4 para. 55(3)