Part 5Loan Relationships

Chapter 1Introduction

How profits and deficits from loan relationships are dealt with

295General rule: profits arising from loan relationships chargeable as income

(1)

The general rule for corporation tax purposes is that all profits arising to a company from its loan relationships are chargeable to tax as income in accordance with this Part.

(2)

But see section 465 (exclusion of distributions except in tax avoidance cases).