Finance Act 1996

Relief for loans to traders

8 (1) Section 253 of the Taxation of Chargeable Gains Act 1992 (relief for loans to traders) shall be amended as follows.

(2) In subsection (3):

(a) for the words from the beginning until “is satisfied that” there shall be substituted “Where a person who has made a qualifying loan makes a claim and at that time”; and

(b) for the words “when the claim was made” there shall be substituted “at the time of the claim or (subject to subsection (3A) below) any earlier time specified in the claim.”

(3) The following subsection shall be inserted after subsection (3):

“(3A) For the purposes of subsection (3) above, an earlier time may be specified in the claim if:

(a) the amount to which that subsection applies was also irrecoverable at the earlier time; and either

(b) for capital gains tax purposes the earlier time falls not more than two years before the beginning of the year of assessment in which the claim is made; or

(c) for corporation tax purposes the earlier time falls on or after the first day of the earliest accounting period ending not more than two years before the time of the claim.”

(4) In subsection (4) for the words from the beginning until “is satisfied that” there shall be substituted “Where a person who has guaranteed the repayment of a loan which is, or but for subsection (1)(c) above would be, a qualifying loan makes a claim and at that time”.

(5) The amendments made by this paragraph shall have effect in relation to claims made on or after 6th April 1996.