Section 458 — Corporation Tax Act 2010: Relief in case of repayment or release of loan

Relief in case of repayment or release of loan 458 1 Subsection (2) applies if a close company has made a loan or advance which gave rise to a charge to tax on the company under section 455.

2 Relief is to be given from that tax, or a proportionate part of it, if—

a the loan or advance or part of it is repaid to the company, or b the whole or part of the debt in respect of the loan or advance is released or written off.

3 Relief under this section is to be given on a claim, which must be made within 4 years from the end of the financial year in which the repayment is made or the release or writing off occurs.

4 Subsection (5) applies if—

a the repayment of the whole or part of a loan or advance occurs on or after the day on which tax under section 455 becomes due and payable in relation to the loan or advance, or b the release or writing off of the whole or part of the debt in respect of a loan or advance occurs on or after the day on which tax under that section becomes due and payable in relation to the loan or advance.

5 Relief in respect of the repayment, release or writing off may not be given under this section at any time before the end of the period of 9 months from the end of the accounting period in which the repayment, release or writing off occurred.

6 Schedule 1A to TMA 1970 (claims and elections not included in return) applies to a claim for relief under this section unless—

a the claim is included (by amendment or otherwise) in the return for the period in which the loan or advance was made, and b the relief may be given at the time the claim is made.