Income Tax Act 2007 section 412B

Claims for additional relief: sideways relief

Section 412B allows a lender who has an irrecoverable peer-to-peer loan loss to claim sideways relief, enabling the loss (or part of it) to be set against interest income received from peer-to-peer loans held through other platforms, where the lender's interest income from the same platform is insufficient to absorb the full loss.

• Sideways relief is only available where a lender has no peer-to-peer interest income from the same platform, or insufficient income from that platform, to fully absorb the irrecoverable loan amount under section 412A
• The claim covers either the full outstanding principal of the irrecoverable loan or the portion that could not be deducted against same-platform interest income
• The deduction may only be made against interest income arising from qualifying peer-to-peer loans arranged through a different platform operator from the one through which the irrecoverable loan was made
• The amount of sideways relief is capped in accordance with the general limits on income tax reliefs set out in section 25(4) and (5)