Commentary on Sections Example 3 £150(Pe) – £50(E) = £100 Section 178: Exceptions for loans where interest qualifies for tax relief
693.This section provides that loans which would qualify for tax relief in a tax year if interest were paid on them are not taxable cheap loans for that year. Paragraphs (a) to (d) set out the types of interest. It derives from section 161A(2) of ICTA.