198Balancing payments by guarantor to issuer: no charge to, or relief from, tax
(1)If each of the qualifying conditions (see section 197) is met, subsection (2) applies to the balancing payments made by all of the guarantor companies if, or so far as, the total amount of those payments does not exceed the total amount of the reductions within section 197(4).
(2)Payments to which this subsection applies—
(a)are not to be taken into account in calculating for the purposes of corporation tax the profits or losses of the guarantor company or companies or the issuing company, and
(b)are not for any purpose of the Corporation Tax Acts to be regarded as distributions.
(3)In this section, the following expressions have the meaning given by section 197—
“the balancing payments”,
“the guarantor company”, and
“the issuing company”.