(a) Subject to this section, where a close company, otherwise than in the ordinary course of a business carried on by it which includes the lending of money, makes any loan or advances any money to an individual who is a participator in the company or an associate of a participator, the company shall be deemed for the purposes of this section to have paid in the year of assessment in which the loan or advance is made an annual payment of an amount which, after deduction of income tax at the standard rate for the year of assessment in which the loan or advance is made, is equal to the amount of the loan or advance.
(b) Section 239 shall apply for the purposes of the charge, assessment and recovery of the tax referred to in paragraph (a).
(c) The annual payment referred to in paragraph (a) shall not be a charge on the company's income within the meaning of section 243.
(2) For the purposes of this section, the cases in which a close company is to be regarded as making a loan to any p
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