Corporation Tax Act 2009 section 376

Interpretation of section 375

Section 376 provides definitions and interpretive rules for the key terms used in section 375, which deals with loans to close companies by participators and their associates.

• The close company rules apply for these purposes, but extended to include non-UK resident companies that would otherwise be excluded
• A participator in a company that controls another company is also treated as a participator in that other company, but a person who is only a loan creditor is not treated as a participator
• Specific definitions are provided for terms including "CIS-based close company", "CIS limited partnership", "non-qualifying territory", "resident for tax purposes", and "small or medium-sized enterprise"
• A non-qualifying territory is classified as "non-taxing" if companies are not liable to tax there by reason of domicile, residence, or place of management