Interpretation
2.—(1) In these Regulations—
“asset-holding company” has the meaning given by regulation 6;
“capital market arrangement” and “capital market investment” have the same meaning as in section 72B(1) of the Insolvency Act 1986(1) (see paragraphs 1, 2 and 3 of Schedule 2A to that Act);
“commercial paper funded company” has the meaning given by regulation 9;
“financial asset” has the meaning it has for generally accepted accounting practice (subject to paragraph (2)) but—
includes derivative contracts as defined for the purposes of Schedule 26 to the Finance Act 2002 (see paragraph 2 (1) of that Schedule (2)) whether otherwise constituting an asset or a liability, and
does not include shares (other than shares in a securitisation company which is party to the capital market arrangement);
“ICTA” means the Income and Corporation Taxes Act 1988(3);
“independent persons” means persons who are not connected with a company (and see paragraph (3));
“intermediate borrowing company” has the meaning given by regulation 7;
“note-issuing company” has the meaning given by regulation 5;
“related transaction” is to be construed in accordance with paragraphs (4) and (5);
“retained profit” is to be construed in accordance with regulation 10;
“securitisation company” has the meaning given by regulation 4;
“specified regulations” means regulations 14 (corporation tax charge) and 16 to 20 (application, modification and non-application of provisions of the Corporation Tax Acts);
“warehouse company” has the meaning given by regulation 8.
(2) For the purposes of these Regulations whether an asset acquired, held or managed by a company is a financial asset shall be determined at the time that asset is first acquired, held or managed by that company.
(3) Section 839 of ICTA(4) (connected persons) applies for the purposes of the definition of “independent persons”, except that in applying the definition of “control” in that section a person is not to be treated as a participator in a company by reason only that he is a loan creditor of the company.
(4) For the purpose of these Regulations one or more transactions are to be regarded as related transactions, in the case of any arrangements, if it would be reasonable to assume, from either or both of—
(a)the likely effect of the transactions, and
(b)the circumstances in which the transactions are entered into or effected,
that none of the transactions would have been entered into or effected independently of the arrangements.
(5) Transactions are not prevented from being related transactions, in the case of any arrangements, just because the transactions—
(a)are not between the same parties, or
(b)are not between the parties to the capital market arrangements.
1986 c.45. Section 72B was inserted by section 250(1) of the Enterprise Act 2002 (c. 40) and Schedule 2A was inserted by section 250(2) of, and Schedule 18 to, that Act. Paragraph 1 of Schedule 2A was amended by S.I. 2003/1468 and S.I. 2003/2093.
2002 c. 23. Paragraph 2(1) was amended by articles 2 and 3 of S.I. 2004/2201.
1988 c. 1. Section 839 was amended by section 74 of, and paragraph 20 of Schedule 17 to, the Finance Act 1995 (c. 4), section 882 of, and paragraph 341 of Schedule 1 to, the Income Tax (Trading and Other Income) Act 2005 (c. 5), and S.I. 1988/745.