»Ê¹ÚÌåÓýapp

Before amendment by FA96/S253 (3) provided that the loss arose at the date of the claim. During the period 6 December 1990 to 5 April 1996 ESC/D36 (see CG65942) gave a measure of retrospection. For claims made on or after 6 April 1996, the changes made FA96/SCH39/PARA8 allow the loss to be made before the time of the claim. Where a qualifying loan has BECOME irrecoverable, the loss may be treated as arising either at the time of the claim or at a specified earlier time. An earlier time may be specified for the claim if

• the amount claimed was also irrecoverable at the earlier time, and
• for a person other than a company, the earlier time is not more than two years before the beginning of the year of assessment in which the claim is made, or
• in the case of a company, the earlier time is on or after the first day of the earliest accounting period ending not more than two years before the time of claim.

»Ê¹ÚÌåÓýapp provisions which allow the loss to arise before the time of the claim DO NOT APPLY to guarantee payments within Section 253 (4) (see CG65990+).