Income Tax Act 2007 section 404

Eligibility requirements for interest on loans within section 403

Section 404 sets out the time limit within which interest on a loan taken out to pay inheritance tax must be paid in order to qualify for tax relief.

• Interest relief is only available on loans taken out to pay inheritance tax as described in section 403
• The interest must relate to a period ending within 12 months from the date the loan was made
• If interest continues to accrue beyond the 12-month period, only the portion relating to the first 12 months qualifies for relief
• Any interest attributable to a period after the 12-month window is not eligible for relief