Part 8Other reliefs

Chapter 1Interest payments

Loans for investing in partnerships

398Loan to invest in partnership

1

This section applies to a loan to an individual that is used in one or more of the ways specified in subsection (2).

2

The ways are—

a

purchasing a share in a partnership,

b

contributing money to a partnership, by way of capital or premium, that is used wholly for the purposes of the trade or profession carried on by the partnership,

c

advancing money to a partnership that is so used, and

d

repaying another loan to which this section applies.

3

This section is subject to section 411 (ineligibility of interest where business is occupation of commercial woodlands).