Part 8Other reliefs
Chapter 1Interest payments
The relief: introduction
387Exclusion of double relief etc
1
Interest for which relief is given under this Chapter is not allowable as a deduction for any other income tax purposes.
2
No relief is given under this Chapter for any tax year for the payment of any interest taken into account in calculating the profits of—
a
any trade, profession or vocation,
b
any UK property business, or
c
any overseas property business.
3
If interest is so taken into account, no relief is given under this Chapter for any relevant tax year for other interest on the same debt or liability.
4
A tax year is a relevant one if the interest has been taken into account in calculating the profits of the trade, profession, vocation or business of the tax year.
5
For the purposes of subsection (3) all interest which—
a
is capable of being taken into account in calculating the profits of a trade, profession, vocation or business, and
b
is payable by the same person on money advanced to the person on current account,
is treated as interest on the same debt.
6
It does not matter whether the money is advanced—
a
on one or more accounts, or
b
by the same or separate banks or other persons.
7
The reference in subsections (2) to (4) to interest taken into account is a reference to interest allowed as a deduction in an assessment which can no longer be varied (whether on appeal or otherwise).