Corporation Tax Act 2009 section 465

Exclusion of distributions except in tax avoidance cases

Section 465 sets out the general rule that amounts which constitute distributions are excluded from the loan relationships rules, unless they arise from tax avoidance arrangements.

• Credits and debits relating to amounts that are distributions when paid are generally excluded from the loan relationships Part and cannot be brought into account under it
• An exception applies where credits arise from avoidance arrangements — these must still be brought into account under the loan relationships rules
• Amounts excluded from the loan relationships Part may still be brought into account for corporation tax purposes under other provisions
• Certain specific categories of payment (such as hybrid capital instruments, building society dividends, and registered society dividends) are prevented from being treated as distributions by other legislation, meaning they remain within the loan relationships Part