SolvedCG15830 | Losses: relief for loans to traders
From HM Revenue & Customs · Capital Gains Manual
Under certain circumstances a loss may be claimed
where money lent to a person carrying on a trade, profession or vocation and used wholly for the purposes of that person’s business has become irrecoverable, or
where payment has been made under a guarantee in respect of such a loan.
Relief is not available under S253(3) if the borrower’s debt is a debt on a security, see CG53420+.
A qualifying loss under TCGA92/s253 will be an allowable loss.