CG15830 - Losses: relief for loans to traders

TCGA92/S253

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+.

A qualifying loss under TCGA92/s253 will be an allowable loss.