32 Income tax relief for irrecoverable peer-to-peer loans
Finance Act 2016 (2016 c 24) | Legislation

Reliefs: Peer-to-Peer Lending

32  Income tax relief for irrecoverable peer-to-peer loans

(1)     ITA 2007 is amended as follows.

(2)     After section 412 insert—

“Chapter 1A
Irrecoverable Peer-to-Peer Loans
The relief
412A Relief for irrecoverable peer-to-peer loans

(1)     A person (“L”) is entitled to relief under this section if—

(a)     L has made a peer-to-peer loan (“the relevant loan”),

(b)     the loan was made through an operator,

(c)     L has not assigned the right to recover the principal of the loan, and

(d)     any outstanding amount of the principal of the loan has, on or after 6 April 2015, become irrecoverable.

(2)     But if the outstanding amount became irrecoverable before 6 April 2016 L is entitled to relief under this section only on the making of a claim.

(3)     The relief is given by deducting the outstanding amount in calculating L's net income for the tax year in which the amount became irrecoverable (see Step 2 of the calculation in section 23).

(4)     The deduction under this section is to be made only from income arising from the payment to L of interest on—

(a)     the relevant loan, and

(b)     any other loan within subsection (5) or (6).

(5)

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