Section 419 | Loans and advances to persons who die

(1)This section applies if—

(a)a loan or advance is made to a person who dies,

(b)a company is or was chargeable to tax under section 455 of CTA 2010 (charge to tax in case of loan to participator) in respect of the loan or advance, and^F1

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

(2)Tax is not charged under this Chapter if at the time of the release or writing off the debt is due from the person's personal representatives in that capacity, but see—

(a)section 664 (under which the amount that would be so charged is treated as part of the aggregate income of the estate for the purposes of Chapter 6 of Part 5), and

(b)section 947 of CTA 2009 (under which similar provision is made for the purposes of Chapter 3 of Part 10 of that Act).^F2

(3)If subsection (2) does not apply, tax is charged under this Chapter on the person from whom the debt is due at the time of release or writing off.