To the extent that, in any accounting period1, a loan relationship2 of a company3 is one to which it is a party for the purposes of a trade4 carried on by it, the credits and debits given in respect of that relationship for that period are to be treated for the purposes of corporation tax (according to whether they are credits or debits) either:
(1) as receipts of that trade falling to be brought into account in computing the profits of that trade for that period; or
(2) as expenses of that trade which are deductible in computing those
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