PART IV PROVISIONS RELATING TO THE SCHEDULE D CHARGE
C1CHAPTER V COMPUTATIONAL PROVISIONS
Deductions
88DRestriction of deductions in respect of certain debts
1
This section applies to debts to which the following provisions do not apply—
a
Chapter 2 of Part 4 of the Finance Act 1996 (loan relationships, etc);
b
Schedule 26 to the Finance Act 2002 (derivative contracts);
c
Schedule 29 to that Act (intangible fixed assets).
2
In calculating the profits of a company's trade for the purposes of corporation tax, no deduction is allowed in respect of a debt owed to the company, except—
a
by way of impairment loss, or
b
to the extent that the debt is released wholly and exclusively for the purposes of that trade as part of a statutory insolvency arrangement.
3
In this section “debt” includes an obligation or liability that falls to be discharged otherwise than by the payment of money.
4
In this section “trade” has the meaning given by section 6(4).
See—1979(C) s.122—election to take capital gain or loss into account when asset appropriated to stock in trade.1989 ss.67-74—employee share ownership trusts.Banking Act 1987 (c.22) s.66—contributions to the Deposit Protection Fund.