420Loans and advances to [F1trustees of settlements] that have endedU.K.
(1)This section applies if—
(a)a loan or advance is made to trustees of a [F2settlement],
(b)a company is or has been assessed or is liable to be assessed under section 419 of ICTA (loans to participators in close companies etc.) in respect of the loan or advance, and
(c)after the [F3settlement] has ended the company releases or writes off the whole or part of the debt in respect of the loan or advance.
(2)Tax is charged under this Chapter on the person from whom the debt is due at the time of release or writing off.
Textual Amendments
F1Words in s. 420 title substituted (retrospective to 6.4.2006) by Finance Act 2006 (c. 25), Sch. 13 para. 31(1)(a)(c)(3)
F2Word in s. 420(1)(a) substituted (retrospective to 6.4.2006) by Finance Act 2006 (c. 25), Sch. 13 para. 31(1)(b)(3)
F3Word in s. 420(1)(c) substituted (retrospective to 6.4.2006) by Finance Act 2006 (c. 25), Sch. 13 para. 31(1)(b)(3)