P has made a loan, or a quasi-loan, to a relevant person,

the loan or quasi-loan was made on or after F19 December 2010, and

an amount of the loan or quasi-loan is outstanding immediately before the end of 5 April 2019.

is to be determined in accordance with F8paragraphs 3 to 18, and

does not depend on the loan or quasi-loan subsisting at that time.

a person (“P”) is treated as taking a relevant step within paragraph 1 (“the initial step”) by reason of making a loan or quasi-loan, and

an election has been made by A for the purposes of this paragraph.

may be made at any time before 1 October 2020, and

may be made at a later time if an officer of Revenue and Customs allows it.

a person is treated as taking a relevant step within paragraph 1 by reason of making a loan or quasi-loan,

a reasonable case could have been made that for a qualifying tax year (“the relevant year”) A was chargeable to income tax on an amount that was referable to the loan or quasi-loan,

at a time when an officer of Revenue and Customs had power to recover (from A or any other person) income tax for the relevant year in respect of that amount, a qualifying tax return or two or more qualifying tax returns of the same type taken together contained a reasonable disclosure of the loan or quasi-loan, and

as at 6 April 2019 an officer of Revenue and Customs had not taken steps to recover (from A or any other person) income tax for the relevant year in respect of that amount.

a reasonable case could have been made that for a tax year other than the relevant year (“the alternative year”) A was chargeable to income tax on an amount within sub-paragraph (3), and

it is the same amount as is mentioned in sub-paragraph (1),

it is part of the amount mentioned in sub-paragraph (1), or

it is derived from or represents the whole or part of the amount mentioned in sub-paragraph (1).

identified the loan or quasi-loan,

identified the person to whom the loan or quasi-loan was made in a case where the loan or quasi-loan was made to a person other than A,

identified the relevant arrangements in pursuance of which or in connection with which the loan or quasi-loan was made, and

provided such other information as was sufficient for it to be apparent that a reasonable case could be made that for the relevant year A was chargeable to income tax on an amount that was referable to the loan or quasi-loan.

any form of credit;

a payment that is purported to be made by way of a loan.

which is a right to a payment or a transfer of assets, and

in respect of which the condition in sub-paragraph (3) is met.

a payment made, by way of a loan or otherwise, to the relevant person, or

a transfer of assets to the relevant person.

the initial principal amount lent, and

any sums that have become principal under the loan, otherwise than by capitalisation of interest.

the amount of principal under the loan that has been repaid before 17 March 2016, and

payments in money made by the relevant person on or after 17 March 2016 by way of repayment of principal under the loan.

there is any connection (direct or indirect) between the payment and a tax avoidance arrangement (other than the arrangement under which the loan was made), or

any liability for income tax arising by virtue of the application of Chapter 2 by reason of the relevant step mentioned in sub-paragraph (1)(b), and

where section 554Z6 of ITEPA 2003 (overlap with certain earnings) applies because that relevant step gives rise to relevant earnings for the purposes of that section, any liability for income tax in respect of those relevant earnings.

a person (“P”) has made a loan to a relevant person,

the loan was made on or after F219 December 2010, and

before the end of 5 April 2019, A or B acquires (whether or not for consideration) a right to payment of the whole or part of the loan.

for the purposes of paragraph 1(1) as an amount, of the loan made by P to the relevant person, that is outstanding immediately before the end of 5 April 2019;

for the purposes of F22paragraphs 1(4) and 1A(5) and section 554Z3(1) of ITEPA 2003, as an amount of the loan that is outstanding at the time P is treated as taking the relevant step under paragraph 1(1).

payments in money are made by way of repayment of principal under the loan, and

some or all of the payments are made in a currency other than the loan currency.

the loan currency is a currency other than sterling, and

it is reasonable to suppose that the main reason, or one of the main reasons, for the loan being made in that currency is that the loan currency is expected to depreciate as against sterling during the loan period.

beginning at the time the loan is made, and

ending with the time by which, under the terms of the loan, the whole of the loan is to be repaid.

paragraphs 7 and 8 do not apply in relation to the loan, and

sub-paragraphs (2) to (5) apply for the purposes of calculating the amount of the loan that is outstanding at the time P is treated as taking the relevant step F24within paragraph 1.

the value in sterling, at the reference date, of the initial principal amount lent, and

the value in sterling, at the reference date, of any sums that become principal under the loan, otherwise than by capitalisation of interest.

in relation to an amount within sub-paragraph (2)(a), means the date on which the loan is made, and

in relation to a sum within sub-paragraph (2)(b), means the date on which the sum becomes principal.

the amount of principal under the loan that has been repaid in sterling, and

where payments are made, in a currency other than sterling, by way of repayment of principal under the loan, the amount equal to the sterling value of the payments.

an amount equal to the value of the acquired debt (see paragraph 2(2)), and

where P subsequently acquires a further right (an “additional debt”) to a payment, or transfer of assets, in connection with the payment mentioned in paragraph 2(3)(a) or (as the case may be) the transfer mentioned in paragraph 2(3)(b), an amount equal to the value of the additional debt.

where the acquired debt is a right to payment of an amount, the “value” of the debt is that amount,

where the additional debt is a right to payment of an amount, the “value” of the debt is that amount, but is nil if the additional debt accrued to P by the capitalisation of interest on the acquired debt or another additional debt, and

the amount (if any) by which the initial debt amount has been reduced (by way of repayment) before 17 March 2016,

payments in money (if any) made by the relevant person on or after 17 March 2016 by way of repayment of the initial debt amount, and

if the acquired debt or an additional debt is a right to a transfer of assets, and the assets have been transferred, an amount equal to the market value of the assets at the time of the transfer.

there is any connection (direct or indirect) between the payment or transfer and a tax avoidance arrangement (other than the arrangement under which the quasi-loan was made), or

any liability for income tax arising by virtue of the application of Chapter 2 by reason of the relevant step mentioned in sub-paragraph (1)(b), and

where section 554Z6 of ITEPA 2003 (overlap with certain earnings) applies because that relevant step gives rise to relevant earnings for the purposes of that section, any liability for income tax in respect of those relevant earnings.

a person (“P”) has made a quasi-loan to a relevant person,

the quasi-loan was made on or after F279 December 2010, and

before the end of 5 April 2019, A or B acquires (whether or not for consideration) a right to the payment or transfer of assets mentioned in paragraph 2(2)(a).

for the purposes of paragraph 1(1) as an amount, of the quasi-loan made by P to the relevant person, that is outstanding immediately before the end of 5 April 2019;

for the purposes of F28paragraphs 1(4) and 1A(5) and section 554Z3(1) of ITEPA 2003, as an amount of the quasi-loan that is outstanding at the time P is treated as taking the relevant step under paragraph 1(1).

where the right acquired by A or B is a right to payment of an amount, the “value” of the right is that amount;

payments in money are made by way of repayment of the initial debt amount, and

some or all of the payments are made in a currency other than the quasi-loan currency.

the quasi-loan currency is a currency other than sterling, and

it is reasonable to suppose that the main reason, or one of the main reasons, for the quasi-loan being made in that currency is that the quasi-loan currency is expected to depreciate during the quasi-loan period.

beginning at the time the quasi-loan is made, and

ending with the time by which, under the terms of the quasi-loan, the whole of the quasi-loan is to be repaid.

paragraphs 15 and 16 do not apply in relation to the quasi-loan, and

sub-paragraphs (2) to (5) apply for the purposes of calculating the amount of the quasi-loan that is outstanding at the time P is treated as taking the relevant step F30within paragraph 1.

the value in sterling, at the reference date, of the acquired debt, and

the value in sterling, at the reference date, of any additional debt.

in relation to a right within sub-paragraph (2)(a), means the date on which P acquires it, and

in relation to a right within sub-paragraph (2)(b), means the date on which P acquires it.

the amount of the initial debt amount that has been repaid in sterling, and

where payments are made, in a currency other than sterling, by way of repayment of the initial debt amount, the amount equal to the sterling value of the payments.