CG65931 - Losses: loans to traders: qualifying loans

To qualify for relief under TCGA92/S253 (3), the loan must have been of money and

• must have been made on or after 12 April 1978,
• must have been made to a borrower resident in the United Kingdom (if made before 24 January 2019); and
• must have been used wholly for the purposes of the borrower’s trade, or, provided that the trade is actually carried on subsequently, for the purposes of setting it up. Loans made where the borrower never commences a trade will not qualify.

For the purposes of this section, trade includes profession or vocation, but does not include a trade which consists of or includes the lending of money.