Income Tax Act 2007 section 412H

Interaction with other reliefs

Section 412H restricts the amount of relief available for an irrecoverable peer-to-peer loan where another form of income tax relief has already been obtained in connection with the same loan.

• Where any person has already obtained income tax relief (other than under the peer-to-peer lending chapter) that is properly attributable to a loan, the relief for the irrecoverable portion is restricted.
• The amount of principal treated as irrecoverable cannot exceed the original principal of the loan minus the amount of the other relief already obtained.
• This prevents a double benefit by ensuring that the total tax relief claimed across different provisions does not exceed the actual economic loss suffered on the loan.
• The restriction applies regardless of which person obtained the other relief — it does not have to be the same individual claiming the irrecoverable loan relief.