Corporation Tax Act 2009 section 303

"Money debt"

Section 303 defines what constitutes a "money debt" for the purposes of the loan relationships rules in Part 5 of the Act.

• A money debt is one that is settled (or may be settled) by payment of cash, transfer of a right to payment under another money debt, or the issue or transfer of company shares
• Any option held by either party to settle the debt in some other way is disregarded when determining whether the debt qualifies as a money debt
• A money debt is treated as arising from a lending transaction if an instrument has been issued to represent either security for the debt or the creditor's rights in respect of it
• Debts arising from rights conferred by company shares are generally excluded from being lending transactions, but specific exceptions apply for OEICs, unit trusts, offshore funds, and shares with guaranteed returns