(1)This section applies so far as in any accounting period a company is a party to a loan relationship for the purposes of a trade it carries on.
(2)The credits in respect of the relationship for the period are treated as receipts of the trade which are to be brought into account in calculating its profits for that period.
(3)The debits in respect of the relationship for the period are treated as expenses of the trade which are deductible in calculating those profits.
(4)So far as subsection (3) provides for any amount to be deductible, it has effect despite anything in—
(a)section 53 (capital expenditure),
(b)section 54 (expenses not wholly and exclusively for trade and unconnected losses), or
(c)section 59 (patent royalties).
(5)This section is subject to—
(a)section 330 (debits in respect of pre-trading expenditure),
(b)section 482(1) (under which credits or debits to be brought into account under Chapter 2 of Part 6 (relevant non-lending relationships) are treated as non-trading credits or debits), and
(c)section 494(2A) of ICTA (under which some credits and debits affecting ring-fence profits from petroleum extraction activities are treated as non-trading credits and debits).