Section 386 | Relevant loan relationship credits

(1)This section applies for the purposes of section 385.

(2)An amount is a “relevant loan relationship credit” if—

(a)it is a credit that is (or apart from this Part would be) brought into account for the purposes of corporation tax in respect of a loan relationship under—

(i)Part 3 of CTA 2009 as a result of section 297 of that Act (loan relationships for purposes of trade), or

(ii)Part 5 of that Act (other loan relationships), and

(b)it is not an excluded credit.

(3)A credit is “excluded” for the purposes of subsection (2)(b) if—

(a)it is in respect of an exchange gain (within the meaning of Parts 5 and 6 of CTA 2009), or

(b)it is in respect of the reversal of an impairment loss.