This is a relief that applies solely to loans taken out before 9 March 1999 by individuals who were already over the age of 65. As a result, it is of limited application and the number of individuals affected will diminish every year. These provisions were not rewritten into the Income Tax Act 2007 and therefore are one of the few remaining provisions of the Income and Corporation Taxes Act 1988 which continue in force for income tax purposes.

Relief is given by means of a reduction in the claimant’s tax liability at Step 6 of the calculation and the reduction is 23% of the eligible interest paid in the tax year (ICTA 1988, s. 353(1A), (1AA) and (1AB)).

Need help? Get subscribed!

To subscribe to this content, simply call 0800 231 5199

We can create a package that’s catered to your individual needs.

Or book a demo to see this product in action.