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HMRC internal manual

Capital Gains Manual

HM Revenue & Customs
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Losses: relief for loans to traders


Under certain circumstances a loss may be claimed

  • where money lent to a person carrying on a trade, profession or vocation and used wholly for the purposes of that person’s business has become irrecoverable, or
  • where payment has been made under a guarantee in respect of such a loan.

Relief is not available under S253(3) if the borrower’s debt is a debt on a security, see CG53420+.