Corporation Tax Act 2010 section 464

Section 463: other person treated as releasing or writing off debt

Section 464 determines which company is treated as having released or written off a debt for the purposes of the section 463 income tax charge on the debtor, where the original section 455 tax charge was attributed to a different company under the loan redirection rules in section 460.

• Where section 460 has redirected a loan so that company A (rather than company B, the actual lender) is treated as having made the loan for the purposes of sections 455 to 459, this section applies to any subsequent release or write-off of that debt.
• If company B (the company that actually made the loan, or is deemed to have made it under section 455(4), or would be so deemed if it were a close company) releases or writes off all or part of the debt, then for section 463 purposes it is company A — not company B — that is treated as having released or written off the debt.
• This ensures consistency: the same company that bore the section 455 tax charge (company A) is also treated as the company releasing the debt, so that the section 463 income tax consequences for the debtor follow through correctly.
• The practical effect is that the identity of the company treated as releasing the debt aligns with the company to which the original loan was attributed, preserving a coherent chain of tax treatment across the close company loan provisions.