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HMRC internal manual

Capital Gains Manual

HM Revenue & Customs
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Losses: loans to traders: recoveries on or after 20/3/90: groups

TCGA92/S253 (7) & (8)

TCGA92/S253 (5) only applies where a recovery is made by the person who made the loan or the payment under the guarantee. Section 253 (7) and (8), introduced by FA90/S83, extend the recovery charge to ensure that where

  • a loan made by a company has become irrecoverable and Section 253 (3) relief has been given


  • a company has made a payment under a guarantee and Section 253 (4) relief has been givena charge arises on any recovery made by another company within the same group at the time the loan was made or at any subsequent time.

Section 253 (7) and (8) apply to recoveries on or after 20 March 1990.