Part 8Other reliefs
Chapter 1Interest payments
General and supplementary
409Business successions between partnerships
1
This section applies if—
a
a loan to which section 398 applies is made to an individual,
b
the partnership in question (“the old partnership”) is dissolved,
c
on its dissolution another partnership of which the individual is a member (“the new partnership”) is formed to carry on the whole or part of the undertaking carried on by the old partnership, and
d
interest payable on the loan for the period ending with the dissolution of the old partnership was eligible for relief (or would have been had any been payable).
2
This Chapter applies as if the old partnership and the new partnership were the same partnership.
3
Section 399(5) (salaried partners etc treated as partners) applies for the purposes of subsection (1)(c) as it applies for the purposes of section 399(2).