Part 6Tax arbitrage

Deduction schemes

240Debt instruments treated as equity

(1)A scheme is a deduction scheme if it includes a debt instrument issued by a company that is treated as equity in the company under generally accepted accounting practice.

(2)In this section “debt instrument” means an instrument issued by a company that—

(a)represents a loan relationship of the company, or

(b)would do so if the company were UK resident.