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Taxes Consolidation Act, 1997 (Number 39 of 1997)


87B Release of debts in certain trades.

(1) In this section—

specified debt” means any debt incurred by an individual in respect of borrowed money employed in the purchase or development of land held as trading stock (within the meaning of section 89) of a specified trade;

specified trade” means a trade, or a business which is deemed to be a trade by virtue of section 640(2)(a), consisting of or including dealing in or developing land to which Chapter 1 of Part 22 applies;

tax year” means a year of assessment.

(2) If at any time the whole or part of a specified debt of an individual who is engaged in a specified trade is released, the amount released shall be treated as a receipt of the specified trade arising in the tax year in which the release is effected.

(3) If, in any case referred to in subsection (2), the specified trade has been permanently discontinued or is treated for tax purposes as if it had been so discontinued, in a tax year before the release was effected, section 91 shall apply as if the amount released were a sum received after the discontinuance.

(4) For the purposes of this section, the release of the whole or part of a specified debt is treated as having been effected on the earliest of the following dates—

(a) the date when the lender has confirmed that release to the borrower,

(b) the date on which the lender and the borrower have first come to an agreement (whether formal or informal) that the debt or part of the debt is no longer required to be repaid,

(c) in a case in which the agreement under which the money was borrowed provides for any release or non-collection of the debt or part of the debt, the date when the conditions necessary for that release or noncollection are first satisfied, or

(d) in a case in which the release is a result of—

(i) a discharge from bankruptcy, or

(ii) a discharge from debt under the provisions of the Personal Insolvency Act 2012,

the date of that discharge.




Inserted by FA13 s18(1)(a). Comes into operation in respect of any specified debt (within the meaning of section 87B) released on or after 13 February 2013.