245 Relief for certain bridging loans

The amount of interest on which a person obtains relief under section 244 is increased in certain limited circumstances where the person has to resort to bridging finance.

The section applies where a person —

• sells his/her only or main residence and acquires another as his/her only or main residence,
• borrows to fund the acquisition or disposal or both, and
• pays interest on such a loan or on a loan used to repay such a loan or borrows to pay the interest on such a loan.

In the period of 12 months from the date of the loan used to fund the acquisition or disposal or both, a person to whom the section applies is entitled to relief under section 244 in respect of the interest paid as if that person had paid no other interest in that period.

Relevant Date: Finance Act 2021