Corporation Tax Act 2009 section 378

Loans by trustees of occupational pension schemes

Section 378 sets out the circumstances in which a loan made by trustees of an occupational pension scheme falls within the special rules that restrict the tax treatment of certain debtor relationships under section 373.

• The section applies where a loan is made by trustees of an occupational pension scheme and one of three conditions (A, B or C) is met during the accrual period
• Condition A is met where the borrowing company is itself the employer of employees who are members of the pension scheme at any time during the accrual period
• Condition B is met where the borrowing company is connected with the employer of the scheme's employees during the accrual period
• Condition C is met where either the borrowing company holds a major interest in the employer company, or the employer company holds a major interest in the borrowing company, at any time during the accrual period