Income Tax Act 2007 section 387

Exclusion of double relief etc.

Section 387 prevents taxpayers from claiming tax relief more than once for the same interest payment, and blocks attempts to switch between claiming interest as a business expense and as a personal deduction from income.

• Interest for which relief is given under this chapter cannot also be deducted for any other income tax purpose
• No relief is available under this chapter if the interest has already been deducted in calculating profits of a trade, profession, vocation, UK property business, or overseas property business
• Where interest on a debt has been used as a business deduction, other interest on the same debt is also blocked from relief under this chapter for the relevant tax year
• Interest is only treated as "taken into account" once it has been allowed as a deduction in a finalised assessment that can no longer be varied on appeal or otherwise