Finance (No. 2) Act 2013

Amendment of section 253 of Principal Act (relief to individuals on loans applied in acquiring interest in partnerships)

3. Section 253 of the Principal Act is amended by inserting the following after subsection (7):

“(8) Notwithstanding subsection (7), the deduction authorised by that subsection shall not exceed—

(a) as respects the year of assessment 2014, 75 per cent of the deduction that would but for this subsection be authorised by that subsection,

(b) as respects the year of assessment 2015, 50 per cent of the deduction that would but for this subsection be authorised by that subsection,

(c) as respects the year of assessment 2016, 25 per cent of the deduction that would but for this subsection be authorised by that subsection, and

(d) as respects the year of assessment 2017 and each subsequent year of assessment, zero per cent of the deduction that would but for this subsection be authorised by that subsection.

(9) This section shall not apply to a loan made after 15 October 2013.

(10) Subsections (8) and (9) shall not apply to a loan referred to in subsection (1) where the partnership is a farming partnership within the meaning of section 598A.

(11) Subsection (9) shall not apply to a loan made after 15 October 2013 which is applied in paying off another loan to an individual used to defray money applied under paragraph (a), (b) or (c) of subsection (1), provided—

(a) the loan does not exceed the balance outstanding on the loan being paid off, and

(b) the term of the loan does not exceed the balance of the term of the loan being paid off.”.