Part 4

Savings and investment income
Chapter 6

Release of loan to participator in close company

Loans and advances to trustees of trusts that have ended
420
1
This section applies if—
a
a loan or advance is made to trustees of a trust,
b
a company is or was chargeable to tax under section 455 of CTA 2010 (charge to tax in case of loan to participator) in respect of the loan or advance, and
c
after the trust has ended the company releases or writes off the whole or part of the debt in respect of the loan or advance.
2
Tax is charged under this Chapter on the person from whom the debt is due at the time of release or writing off.
Words in s. 420(1)(b) substituted (1.4.2010) (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 464 (with Sch. 2)