55Bad debtsU.K.
This section has no associated Explanatory Notes
(1)This section applies to non-money debts to which neither Part 7 (derivative contracts) nor Part 8 (intangible fixed assets) applies.
(2)In calculating the profits of a company's trade, no deduction is allowed in respect of a non-money debt owed to the company, except—
(a)by way of impairment loss, or
(b)so far as the debt is released wholly and exclusively for the purposes of the trade as part of a statutory insolvency arrangement.
(3)In this section “non-money debt” means a debt which is not a money debt for the purposes of Part 5 (loan relationships).