Related Commentary  Related HMRC Manuals

393(1)  Interest on a loan within section 392(1) to an individual is eligible for relief only if–

(a)when the interest is paid the company is not a close investment-holding company, and

(b)the capital recovery condition and either the full-time working conditions or the material interest conditions are met.

393(2)  The capital recovery condition is that in the period from the use of the loan to the payment of the interest the individual has not recovered any capital from the company, apart from any amount taken into account under section 406(2) (recovered capital that is treated as a repayment of the loan).

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