Commentary on Sections Overview Overview Section 358: Exclusion of credits on release of connected companies debts: general
1146.This section precludes a debtor company from bringing a credit into account under this Part on the release of a debt where the debtor and creditor companies are connected. It is based on paragraph 5(3) and (5) of Schedule 9 to FA 1996. This section excludes the credits on the release since the debits have been disallowed (see section 354).
1147.Subsection (1)(b) brings out the fact that the section applies in respect of the accounting period in which the release occurs.