236Loans: no claim after disposal or excessive repayments or receipts of valueU.K.
(1)If the investment consists of a loan, no claim may be made for an accounting period if—
(a)the investor disposes of the whole or any part of the loan before the qualifying date relating to that period,
(b)at any time after the investment is made but before that qualifying date, the amount of the capital outstanding on the loan is reduced to nil, or
(c)before that qualifying date, paragraphs (a) and (b) of section 245(1) (repayments of loan in 5 year period exceeding permitted limits) apply in relation to the investment (whether by virtue of section 246 (receipts of value treated as repayments) or otherwise).
(2)For the purposes of subsection (1)(a) any repayment of the loan is to be ignored.
(3)For the purposes of this section the qualifying date relating to an accounting period is the next anniversary of the investment date to occur after the end of that period.