Section 397 | Credit unions

(1)In calculating the income of a credit union for any accounting period, no credit is to be brought into account for the purposes of this Part in respect of a loan relationship of the union if a member of the union stands in the position of debtor in relation to the debt in question.

(2)But subsection (1) does not apply if the credit union—

(a)is obliged to make a return under section 887(2) of ITA 2007 for the accounting period, and

(b)has not done so within—

(i)3 months after the end of the period, or

(ii)such longer period as an officer of Revenue and Customs allows.

(3)No debit is to be brought into account for the purposes of this Part in respect of a loan relationship of a credit union if a member of the union stands in the position of creditor in relation to the debt in question.