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HMRC internal manual

Capital Gains Manual

Losses: loans to traders: claims

A claim for relief under TCGA92/S253 (3) must be made by the lender; in practice any clear indication by the lender or his agent that relief is sought in respect of a specific irrecoverable amount should be accepted as a valid notice of claim. If the conditions at CG65930 to 65934 are met by reference to the circumstances prevailing at the time the claim is made, the amount of principal (it should be noted that interest is excluded) of a qualifying loan which has become irrecoverable is to be treated as an allowable capital loss.