Part 10 Close companies

Chapter 3 Charge to tax in case of loan to participator

Relief in case of repayment or release of loan

458 Relief in case of repayment or release of loan
(1) Subsection (2) applies if a close company has made a loan or advance which gave rise to a charge to tax on the company under section 455.
(2) Relief is to be given from that tax, or a proportionate part of it, if—
(a) the loan or advance or part of it is repaid to the company, or
(b) the whole or part of the debt in respect of the loan or advance is released or written off.
(3) Relief under this section is to be given on a claim, which must be made within 4 years from the end of the financial year in which the repayment is made or the release or writing off occurs.
(4) Subsection (5) applies if—
(a) the repayment of the whole or part of a loan or advance occurs on or after the day on which tax under section 455 becomes due and payable in relation to the loan or advance, or
(b) the release or writing off of the whole or part of the debt in respect of a loan or advance occurs on or after the day on which tax under that section becomes due and payable in relation to the loan or advance.
(5) Relief in respect of the repayment, release or writing off may not be given under this section at any time before the end of the period of 9 months from the end of the accounting period in which the repayment, release or writing off occurred.
(6) Schedule 1A to TMA 1970 (claims and elections not included in return) applies to a claim for relief under this section unless—
(a) the claim is included (by amendment or otherwise) in the return for the period in which the loan or advance was made, and
(b) the relief may be given at the time the claim is made.
Pt. 10 Chs. 3-3B applied (24.2.2022) by Finance Act 2022 (c. 3), Sch. 2 para. 37
Pt. 10 applied (with modifications) (6.4.2014) by National Insurance Contributions Act 2014 (c. 7), s. 8, Sch. 1 Pt. 1