Taxes Consolidation Act 1997 section 253

Relief to individuals on loans applied in acquiring interest in partnerships

Section 253 provided interest relief on money borrowed by an individual to invest in a partnership — this relief does not apply since 2017.

• Relief applied to loans used to buy a partnership share, contribute capital, or refinance an earlier qualifying loan, provided the borrower personally acted as a partner throughout
• Capital withdrawn from the partnership (through selling a share, receiving a repayment, or assigning a debt) reduced the amount of interest eligible for relief
• Relief was phased out from 2014 (75%) to 2016 (25%), with no relief available from 2017 onwards — this phasing out equally applied to qualifying replacement loans
• Farming partnerships within the meaning of section 598A were exempt from these restrictions and continued to receive full relief