Finance Act, 1982
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Restriction of relief for interest on overdrafts. |
22.—(1) Notwithstanding anything in section 21 (2) (b), no relief shall be given under the principal sections in respect of interest— | |
(a) paid or payable after the operative date on an overdraft which was not in existence on that date, or | ||
(b) paid or payable on or after the 6th day of April, 1983, on an overdraft which was in existence on the operative date. | ||
(2) A loan made on or before the 5th day of April, 1983, replacing an overdraft referred to in subsection (1) (b) shall, for the purposes of sections 21 and 23 , be deemed— | ||
(a) to the extent to which it does not exceed the amount of the overdraft on the operative date, to be a separate loan made on the operative date, and | ||
(b) to the extent of the excess, to be a separate loan made after the operative date. | ||
(3) For the year 1982-83 the amount of interest on an overdraft eligible for relief under the principal sections shall not exceed the amount of interest which would have been payable for that year on the amount of the overdraft on the operative date at the rate at which interest on that amount was chargeable on that date. | ||
(4) For the purposes of sections 21 and 23 , any amount paid in repayment of a loan made on or before the 5th day of April, 1983, shall be deemed to be made in repayment of any amount of the separate loan to which subsection (2) (b) refers in priority to any amount of the separate loan to which subsection (2) (a) refers. | ||
(5) (a) For the purposes of this section and section 23 a loan shall be regarded as replacing an overdraft if it is used solely for the purpose of discharging that overdraft or an overdraft or loan replacing or discharging that overdraft. | ||
(b) In this section and in section 23 “overdraft” means a debt incurred by overdrawing an account or by debiting the account of any person as the holder of a credit card or under similar arrangements. |