Introduction Overview Chapter 3: Charge to tax in case of loan to participator Section 458: Relief in case of repayment or release of loan
1395.This section gives relief from tax in cases in which:
	a loan or advance from a close company has given rise to a charge under section 455, and
	the loan or advance is repaid or the debt in respect of it is released or written off.
1396.It is based on section 419(4) to (4B) of ICTA.
1397.Subsection (1) states when the section applies.
1398.Subsection (2) specifies the relief and the circumstances in which it is given.
1399.Subsection (3) is about claiming the relief. It reflects paragraph 21 of Schedule 39 to FA 2008, which substitutes “4 years” for “six years” in section 419(4) of ICTA with effect from 1 April 2010.
1400.If the company becomes eligible for relief after the tax due under section 455 becomes due and payable, subsections (4) and (5) defer the relief.
1401.Subsection (6) sets the link with TMA.