60 Student loans: certain interest to be disregarded.U.K.
The following section shall be inserted after section 331 of the Taxes Act 1988—
“331A Student loans: certain interest to be disregarded.
(1)If—
(a)a loan is made to a person under any of the relevant student loan provisions,
(b)an amount is recovered from him in respect of the loan,
(c)an amount is repaid to him in respect of the amount recovered, and
(d)interest is paid to him in respect of the amount repaid,
the interest shall be disregarded for all purposes of income tax.
(2)For the purposes of subsection (1) above the relevant student loan provisions are—
(a)section 22 of the M1Teaching and Higher Education Act 1998;
(b)section 73(f) of the M2Education (Scotland) Act 1980;
(c)Article 3 of the M3Education (Student Support) (Northern Ireland) Order 1998.”