Income Tax (Trading and Other Income) Act 2005 section 272B

Meaning of "costs of a dwelling-related loan"

Section 272B defines what counts as a "dwelling-related loan" and what the "costs" of such a loan are, for the purposes of restricting finance cost deductions on residential property businesses.

• A dwelling-related loan is the portion of borrowing for a property business that can reasonably be attributed to generating income from residential property, including land consisting of a dwelling-house or any estate, interest or right in such land
• Borrowing used to create a dwelling-house by construction or adaptation, from which income will be generated, also counts as a dwelling-related loan
• The costs of a dwelling-related loan include interest, amounts economically equivalent to interest, and incidental costs of obtaining finance
• A dwelling-house includes any land occupied or enjoyed with it as its garden or grounds