Section 642: Exception for certain loans or repayments of loans
2461.This section provides time limits for section 641. Where the capital sum paid to the settlor is repaid within 12 months or loans made to the settlor by a body corporate connected with the settlement are not outstanding for more than 12 months in five years, the capital sum is not treated as the settlor’s income. The section is based on section 678 of ICTA.