Income Tax Act 2007 section 399

Interest relief: film partnerships

Section 399(4) restricts the availability of tax relief on interest paid on loans taken out to purchase an interest in certain film partnerships.

• Tax relief is available for interest on loans used to buy into partnerships, including film partnerships.
• Section 399(4) places a specific restriction on relief where the loan relates to acquiring an interest in certain film partnerships.
• This restriction only applies to interest that accrued on or after 10 March 2006.
• Interest that accrued before 10 March 2006 on such loans is not caught by the restriction and remains eligible for relief under the normal rules.