ANNEX 1:: MINOR CHANGES IN THE LAW MADE BY THE BILL This change is in taxpayers’ favour in principle. But it is expected to have no practical effect as it is in line with current practice.
Change 71: Interest relief: loan to invest in co-operative: section 401 and Schedule 2Part 9 (interest: loans for investing in co-operatives)
This change omits the condition that the loan must have been made after 10 March 1981.
Section 361(2)(a) of ICTA specifies that interest on a loan which is invested in a co-operative is only eligible for relief if the loan is made after 10 March 1981. As it is considered unlikely that loans made for this purpose prior to that date still exist, this condition has not been included in the rewritten legislation. But if, exceptionally, there were such loans then this change means that relief would be due provided the other conditions for relief are met.
In addition, where an original loan invested in a co-operative has been replaced by a new loan the condition that the original loan must have been made after 10 March 1981 no longer applies. That is reflected in the provision relating to section 401 in Schedule 2.