CFM5207c - Taxing loan relationships: taxable amounts: write-off of government investment

Writing off government investments

Where the government lends money out of public funds, and then writes it off, the company does not bring in the release as a credit (FA96/SCH9/PARA7).

This is because other legislation, in ICTA88/S400, restricts the company’s losses by the amount written off (CTM04100). This is one of the few occasions when other legislation overrides the loan relationships legislation.

You’ll come across this most often in large government or PFI contracts.