Part 8Other reliefs
Chapter 1Interest payments
Loans for plant or machinery
390Loan to buy plant or machinery for employment use
1
This section applies to a loan that is used for capital expenditure on the provision of plant or machinery to which subsection (2) applies.
2
This subsection applies to plant or machinery if—
a
it is in use for the purposes of an office or employment held by an individual in the tax year,
b
the plant or machinery belongs to the individual, and
c
the individual is entitled to a capital allowance or liable to a balancing charge in respect of it under Part 2 of CAA 2001 for the tax year.
3
An individual is treated as entitled to a capital allowance or liable to a balancing charge in respect of plant or machinery for a tax year (“the later year”) for the purposes of subsection (2)(c) if—
a
the individual has been so entitled or liable for a previous tax year, and
b
no disposal value has been brought into account in respect of it in the later year or any earlier year.
4
An individual is also treated as so entitled or liable for the purposes of this section if the individual would be so entitled or liable but for a contribution made by the individual's employer.