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Version status: In force | Document consolidation status: Updated to reflect all known changes
Version date: 9 October 2019 - onwards
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739LC. Exclusion for third-party debt.

(1) Where -

(a) an amount of income is treated as arising to an IREF under section 739LA or 739LAA, and

(b) some or all of that amount relates to a third-party debt,

the amount of income on which the IREF is charged to income tax shall be reduced by the amount of income that would have been charged to tax had the specified debt consisted solely of third-party debt.

(2)

(a) Subject to subsection (4), for the purposes of this section, 'third- party debt' means -

(i) a loan advanced to the IREF by an enterprise other than an associate of that IREF,

(ii) where the full amount advanced is employed, subject to paragraph (c), in the purchase, development, improvement or repair of a premises, and

(iii) the loan is not subject to any arrangements of a type referred to in subsection (3),

and includes a loan which satisfies the conditions of subparagraphs (i) and (iii) where the amount advanced is used to repay a loan which satisfied the condition of subparagraph (ii).

(b) References in this sect

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