Taxes Consolidation Act 1997 section 252

Restriction of relief to individuals on loans applied in acquiring interest in companies which become quoted companies

Section 252 restricted and phased out the tax relief on interest paid on loans used to invest in companies that became quoted on a stock exchange, and denied relief entirely for loans taken out on or after 29 January 1992 where the company was already quoted at the time of the loan.

• From 29 January 1992, no interest relief was available on a loan used to invest in a company that was already a quoted company at the time the loan was taken out.
• For earlier loans, if the company became quoted by a specified date, relief was phased out over three years: reduced to 70% in year one, 40% in year two, and eliminated from year three onwards.
• The specified date depended on when the loan was taken out and, if later, ran to 1 January in the second tax year after the year in which the company became quoted.
• Relief continued in full for loans used to invest in companies that remained unquoted, but section 248 (the main relieving provision) ceased to apply from 7 December 2010.