Introduction Details of the Section
2.Section (1) inserts new section 321A into the Corporation Tax Act (CTA) 2009.
3.New section 321A(1) applies where a loan giving rise to a charge under section 455 of CTA 2010 is released or written off in whole or in part. Section 455 of CTA 2010 applies where a close company makes a loan or advances money to a relevant person who is a participator in that company or an associate of such a participator. A relevant person is defined as an individual, or a company receiving a loan or advance in a fiduciary or representative capacity.
4.New section 321A(2) prohibits a debit arising from the circumstances described in subsection (1) from being brought into account for the purposes of the CT rules on loan relationships.
5.Section (2) gives the commencement date for the new section, which has effect for debt (or part debt) releases or write-offs on or after 24 March 2010.