# Corporation Tax Act 2010, Section 463: Taxation of debtor on release of loan to trustees of settlement which has ended

Extent: E+W+S+N.I.

(1) This section applies if each of conditions A to D is met.
(2) Condition A is that a company (X) is or was chargeable to tax under section 455 (charge to tax in the case of loan to participator) in respect of a loan or advance made to the trustees of a settlement.
(3) Condition B is that X releases or writes off the whole or part of the debt in respect of the loan or advance.
(4) Condition C is that the person from which the debt was due at the time of the release or writing off is a company (Y).
(5) Condition D is that the release or writing off takes place after the settlement has ended.
(6) When the release or writing off takes place, Y is treated as receiving an amount to which the charge to corporation tax on income applies.
(7) The amount which Y is treated as receiving is equal to the amount released or written off.

---
Source: https://www.legislation.gov.uk/ukpga/2010/4/section/463 (the official version)
Page: https://openlegislation.uk/corporation-tax-act-2010/section-463
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.