Related Commentary  Related HMRC Manuals

874(1)  The company obtaining the capital sum is to be treated as receiving, at the time the sum is obtained, an amount–

(a)which is equal to the chargeable amount, and

(b)to which the charge to corporation tax on income applies.

874(2)  The chargeable amount is–

(a)the amount of the payment for which a deduction by way of relevant tax relief is allowed, or

(b)the total amount of such payments (if more than one).

874(3)  But subsections (1) and (2) have effect subject to–

(a)subsections (4) to (7), and

(b)section 875(3) (hire-purchase agreements).

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