Part 5Loan Relationships
Chapter 18General and supplementary provisions
Connections between persons
469Creditors who are financial traders
(1)
This section sets out the conditions referred to in section 468(1)(a).
(2)
Condition A is that the creditor disposes of or acquires assets representing creditor relationships in the course of carrying on any activities forming an integral part of a trade carried on by it in the accounting period.
(3)
Condition B is that the asset representing the creditor relationship was acquired in the course of those activities.
(4)
Condition C is that that asset—
(a)
is listed on a recognised stock exchange at the end of that period, or
(b)
is a security the redemption of which must occur within 12 months of its issue.
(5)
Condition D is that there is a time in that period when assets of the same kind as the asset representing the creditor relationship are beneficially owned by persons other than the creditor.
(6)
Condition E is that in that period there is not more than 3 months in total during which the equivalent of at least 30% of the assets of that kind is beneficially owned by connected companies.
(7)
Section 470 supplements this section.