Part 8Other reliefs
Chapter 1Interest payments
The relief: introduction
384BF2Restriction on relief where cash basis applies
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 F3carried onF1a UK property business or overseas property business F4the profits of which are calculated on the cash basis for the tax year (see section 271D of ITTOIA 2005).
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.