CG66081 - Losses: loans to traders: recovery: co-guarantors: corresponding amounts
Where relief has been restricted in this way and contributions are in fact recovered from those co-guarantors, Section 253 (6) will not apply to impose a charge. This is because the contributions recovered will correspond to payments under the guarantee for which relief has NOT been given.
A bank loans X £10,000 and the conditions of TCGA92/S253 are satisfied. The whole of the loan is jointly and severally guaranteed by A and B. X is in a hopeless position and the bank calls in the guarantee. A pays the full £10,000 in June 1990. The Inspector agrees that the loan has become irrecoverable from the borrower, but decides that B바카라 사이트™s share of the guarantee payment remains recoverable from B. A바카라 사이트™s loss is computed as follows-
| Ìý | £ |
|---|---|
| Payment in respect of principal | 10,000 |
| less amount payable by B | 5,000 |
| Loss for 1990-91 | (£5,000) |
In December 1990, A recovers £3,000 from B. B is entitled to relief in respect of that £3,000, but A will not face a charge under Section 253 (6) because the £3,000 recovered corresponds to part of the £5,000 which did not qualify for relief. None of the allowable loss corresponds to the amount recovered.