Part 5Loan Relationships
Chapter 2Basic definitions
302“Loan relationship”, “creditor relationship”, “debtor relationship”
(1)
For the purposes of the Corporation Tax Acts a company has a loan relationship if—
(a)
the company stands in the position of a creditor or debtor as respects any money debt (whether by reference to a security or otherwise), and
(b)
the debt arises from a transaction for the lending of money.
(2)
References to a loan relationship and to a company being a party to a loan relationship are to be read accordingly.
(3)
For cases where this Part applies as if a relationship were a loan relationship despite the money debt not arising from a transaction for the lending of money see Chapter 2 of Part 6 (relevant non-lending relationships).
(4)
See also the following provisions of Part 6 (under which other matters are treated as loan relationships or rights, payments or profits under loan relationships)—
(a)
Chapter 3 (OEICs, unit trusts and offshore funds),
(b)
Chapter 4 (building societies),
(c)
Chapter 5 (industrial and provident societies),
(d)
Chapter 6 (alternative finance arrangements),
(e)
Chapter 7 (shares with guaranteed returns etc),
(f)
Chapter 8 (returns from partnerships),
(g)
Chapter 9 (manufactured interest etc),
(h)
Chapter 10 (repos), and
(i)
Chapter 11 (investment life insurance contracts).
(5)
In this Part “creditor relationship”, in relation to a company, means any loan relationship of the company where it stands in the position of a creditor as respects the debt in question.
(6)
In this Part “debtor relationship”, in relation to a company, means any loan relationship of the company where it stands in the position of a debtor as respects the debt in question.