Valid from 01/04/2009
302“Loan relationship”, “creditor relationship”, “debtor relationship”U.K.
(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.