Part 6Relationships treated as loan relationships etc
Chapter 2Relevant non-lending relationships
Introduction: meaning of “relevant non-lending relationship” etc
479Relevant non-lending relationships not involving discounts
1
A company has a relevant non-lending relationship if—
a
the company stands, or has stood, in the position of a creditor or debtor in relation to a money debt,
b
the money debt did not arise from a transaction for the lending of money (and so, because of section 302(1)(b), there is no loan relationship), and
c
the money debt is one of the kinds mentioned in subsection (2).
2
The kinds of debt are—
a
a debt on which interest is payable to or by the company,
b
a debt in relation to which exchange gains or losses arise to the company, F2...
c
d
a debt in relation to which a relevant deduction has been allowed to the company and which is released.
3
In subsection F5(2)(c) “business payment” means a payment which, if it were paid, would fall to be brought into account for corporation tax purposes as a receipt of a trade, UK property business or overseas property business carried on by the company.
F13A
In subsection (2)(d) “relevant deduction” means a deduction allowed in calculating the profits of a trade, UK property business or overseas property business.
4
For the meaning of “money debt” and “interest” in this Chapter, see—
a
section 483 (exchange gains and losses: amounts treated as money debts) and
b
section 484 (provision not at arm's length: meaning of “interest” and “money debt”).
5
For the meaning of “exchange gains or losses”, see section 475.
6
This section is subject to section 485 (exclusion of debts where profits or losses within Part 7 or 8).