Commentary on Sections Overview Overview Section 190: Restrictions on relief
777.This section describes the various circumstances in which relief is not allowed. It is based on ESC B38.
778.Subsection (1) denies a deduction if the funds are applied outside the United Kingdom.
779.Subsection (2) denies a deduction if a deduction has been allowed under section 35 of this Act on the grounds that the debt has become bad or doubtful.
780.Subsection (3) denies a deduction if the trader has received an insurance recovery in respect of the debt. This differs from the approach in the extra-statutory concession. Paragraph 4 of the concession denies relief if any part of the debt is insured. This Act denies, or recovers, relief only if an insurance recovery is received. See part (C) Change 50 in Annex 1.
781.Subsection (4) denies a deduction if the trader can make a claim under section 842 that the income is unremittable. This restriction will apply only if the profits of the trade that include the unremittable amounts arise outside the United Kingdom, for example, because the profits arise in an overseas branch.