§ Mr. Jack
[pursuant to his reply, 8 July 1996, c.37–38]: I regret that the answer was incomplete. It set out the position applicable to income tax payers, and to companies before the changes made in the Finance Act 1996 for corporate debt. However, the position for loans made by companies was amended as part of the wider reform of the tax rules for corporate debt included in the Finance Act 1996. Relief remains available for bad and doubtful debt. How it is given will depend on whether the taxpayer uses an "authorised accruals basis" or an "authorised mark-to-market basis": the aim so far as possible is to follow the company's accounts prepared for non-tax purposes. Relief where loans have been extended for non-trading purposes will in future be allowed on essentially the same terms as for trading loans. Anti-avoidance rules apply to loans made between connected parties.