Commentary on Sections Overview Overview
1137.This Chapter provides rules for impairment losses and release of debt where there is a connection between the debtor and creditor companies.
1138.Paragraph 5ZA of Schedule 9 to FA 1996 requires paragraphs 6, 6A and 6C of that Schedule to apply in relation to a debit in respect of the release of a liability as they apply in relation to an impairment loss. In rewriting these paragraphs references to a debt on the release of a liability (referred to here as a “release debit”) have been inserted into the relevant sections.