Commentary on Sections Overview Overview Section 389: Eligibility requirements for interest on loans within section 388
1083.This section contains two conditions which have to be met if the interest is to be eligible for relief. It is based on section 359(1) and (2) of ICTA.
1084.Both conditions relate to circumstances at the time the interest is paid.
1085.Subsections (4) and (5) provide an apportionment rule if the plant or machinery is used partly for the purposes of the trade, profession or ordinary property business and partly for other purposes. As regards the inclusion of ordinary property businesses, see Change 68 in Annex 1 and the commentary on section 388.