Income Tax Act 2007 section 411

Ineligibility of interest where business is occupation of commercial woodlands

Section 411 restricts tax relief on loan interest where the loan has been used to invest in a close company, employee-controlled company, or partnership whose business consists of occupying commercial woodlands in the United Kingdom.

• Interest on loans used to buy into a close company, employee-controlled company, or partnership is not eligible for relief if the business carried on is the occupation of commercial woodlands
• Where only part of the business involves commercial woodlands, only a proportionate part of the interest is disallowed, based on what is just and reasonable in all the circumstances
• For the purposes of this restriction, multiple businesses carried on by the same company or partnership are treated as a single business
• Commercial woodlands means woodlands in the United Kingdom that are managed on a commercial basis with a view to realising profits