Corporation Tax Act 2009 section 305

Payments, interest, rights and liabilities under a loan relationship

Section 305 defines what is meant by payments, interest, rights and liabilities in the context of a loan relationship for the purposes of Part 5 of the Act.

• Payments or interest under a loan relationship means any amounts paid or payable under the rights or liabilities arising from that relationship.
• Rights or liabilities under a loan relationship means any rights or liabilities arising under the arrangements that give rise to the relationship.
• Rights and liabilities extend to include those attached to any security issued in connection with the underlying money debt.
• Special rules apply to funding bonds, which are dealt with separately under sections 413 and 414.