C1C3C4C2C5Part 4Pension schemes etc

Annotations:
Modifications etc. (not altering text)

C3C4C2C5Chapter 3Payments by registered pension schemes

Introductory

I1C3C4C2C5162C3C4C2C5Meaning of “loan”

1

This section applies for the interpretation of this Chapter.

2

“Loan” does not include the purchase of or subscription to debentures, debenture stock, loan stock, bonds, certificates of deposit or other instruments creating or acknowledging indebtedness which are—

a

listed or dealt in on a recognised stock exchange (within the meaning of F8section 1005 of ITA 2007), or

b

offered to the public.

3

A guarantee of a loan made to or in respect of a F3person who is or has been a member or sponsoring employer of a registered pension scheme F1, or to or in respect of a person who is connected with a F3person who is or has been a member or sponsoring employer of a registered pension scheme but is not F4such a person, is to be treated as a loan to or in respect of the F3person who is or has been a member or sponsoring employer of an amount equal to the amount guaranteed.

4

If a F5person who is or has been a member or sponsoring employer of a registered pension scheme F2or a person who is connected with a F5person who is or has been a member or sponsoring employer of a registered pension scheme but is not F6such a person—

a

is liable to pay a debt, the right to payment of which constitutes an asset held for the purposes of the pension scheme, but

b

is not required to pay it by the relevant date,

the debt is to be treated as a loan made by the pension scheme to the F5person who is or has been a member or sponsoring employer on that date.

5

The relevant date is the date by which a person at arm’s length from the pension scheme might be expected to be required to pay the debt.

F76

For the purposes of this section whether a person is connected with another person is determined in accordance with section 993 of ITA 2007.