Section 415 | Charge to tax under Chapter 6

(1)Income tax is charged if—

(a)a company is or was chargeable to tax under section 455 of CTA 2010 (loans to participators in close companies etc.) in respect of a loan or advance, and

(b)the company releases or writes off the whole or part of the debt in respect of the loan or advance.

(2)Subsection (1) is subject to section 418 (relief where borrowers liable as settlors).

(3)Subsection (4) applies if, as a result of section 460 of CTA 2010, sections 455 to 459 of that Act have effect as if a loan or advance had been made by a company (“A”), rather than the company (“B”) which—

(a)actually made it,

(b)is regarded as having made it under section 455(4) of that Act (deemed loans where debt incurred or assigned to close company), or

(c)would be so regarded if it were a close company.

(4)If the whole or part of the debt is released or written off by B, for the purposes of subsection (1), A rather than B is treated as releasing it or writing it off.

(5)Expressions used in this Chapter have the same meanings as they have for the purposes of section 455 of CTA 2010 .