Where a payment is made by a guarantor under a guarantee then, to the extent that any expenditure for which the participator is liable is met, directly or indirectly, out of that payment, that expenditure is not allowable for PRT purposes. If, however, the participator is liable under the guarantee to reimburse the guarantor, then any such reimbursement made, to the extent that it constitutes allowable expenditure, becomes eligible for relief (FA 1991, s. 105, 106).

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