Part 4Savings and investment income
Chapter 6Release of loan to participator in close company
415Charge to tax under Chapter 6
1
Income tax is charged if—
a
a company F2is or was chargeable to tax under section 455 of CTA 2010 (loans to participators in close companies etc.) in respect of a loan or advance, and
b
the company releases or writes off the whole or part of the debt in respect of the loan or advance.
2
Subsection (1) is subject to section 418 (relief where borrowers liable as settlors).
3
Subsection (4) applies ifF3, as a result of section 460 of CTA 2010, sections 455 to 459 of that Act have effect as if a loan or advance had been made by a company (“A”), rather than the company (“B”) which—
a
actually made it,
b
is regarded as having made it under F1section 455(4) of that Act (deemed loans where debt incurred or assigned to close company), or
c
would be so regarded if it were a close company.
4
If the whole or part of the debt is released or written off by B, for the purposes of subsection (1), A rather than B is treated as releasing it or writing it off.
5
Expressions used in this Chapter have the same meanings F4as they have for the purposes of section 455 of CTA 2010 .