# Finance Act 2013, Paragraph 136


In Chapter 6 (release of loan to participator in close company), after section 420 insert—
“Temporary non-residents
420A (1) This section applies if an individual is temporarily non-resident.
(2) Debts within subsection (3) are to be treated for the purposes of this Chapter as if they had been released or written off in the period of return.
(3) A debt is within this subsection if—
(a) it is the debt, or a part of the debt, in respect of a loan or advance made by a company to the individual,
(b) it is released or written off in the temporary period of non-residence, and
(c) ignoring this section, the individual—
(i) is not liable for tax under this Chapter in respect of the release or write-off, but
(ii) would have been so liable, had the release or write-off taken place in the period of return.
(4) Subsection (3)(c)(i) includes a case where the individual could be relieved of liability on the making of a claim under section 6 of TIOPA 2010 (double taxation relief), even if no claim is in fact made.”

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Source: https://www.legislation.gov.uk/ukpga/2013/29/schedule/45/paragraph/136 (the official version)
Page: https://openlegislation.uk/finance-act-2013/schedule-45/paragraph-136
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.