463Taxation of debtor on release of loan to trustees of settlement which has endedU.K.
(1)This section applies if each of conditions A to D is met.
(2)Condition A is that a company (X) is or was chargeable to tax under section 455 (charge to tax in the case of loan to participator) in respect of a loan or advance made to the trustees of a settlement.
(3)Condition B is that X releases or writes off the whole or part of the debt in respect of the loan or advance.
(4)Condition C is that the person from which the debt was due at the time of the release or writing off is a company (Y).
(5)Condition D is that the release or writing off takes place after the settlement has ended.
(6)When the release or writing off takes place, Y is treated as receiving an amount to which the charge to corporation tax on income applies.
[F1(7)The amount which Y is treated as receiving is equal to the amount released or written off.]
Textual Amendments
F1S. 463(7) substituted (with effect in accordance with Sch. 1 para. 73 of the amending Act) by Finance Act 2016 (c. 24), Sch. 1 para. 31