Meaning of “investment"U.K.
2(1)For the purposes of this Schedule, a [F1company] makes an investment in a body at any time when—
(a)[F1it] makes a loan (whether secured or unsecured) to the body, or
(b)an issue of securities of or shares in the body, for which [F1it] has subscribed, is made to [F1it].
(2)For the purposes of sub-paragraph (1)(a)—
(a)a [F2company] does not make a loan to a body where—
(i)the body uses overdraft facilities provided by that [F2company], or
(ii)that [F2company] subscribes for or otherwise acquires securities of the body;
(b)where the loan agreement authorises the body to draw down amounts of the loan over a period of time, the loan is treated as made at the time when the first amount is drawn down.
Textual Amendments
F1Words in Sch. 16 para. 2(1) substituted (6.4.2007) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 1 para. 419(3)(a) (with Sch. 2)
F2Word in Sch. 16 para. 2(2) substituted (6.4.2007) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 1 para. 419(3)(b) (with Sch. 2)
Commencement Information
I1Sch. 16 para. 2 in force at 23.1.2003 by S.I. 2003/88, arts. 2, 3