Corporation Tax Act 2009 section 470

Section 469: supplementary provisions

Section 470 provides supplementary definitions and rules that clarify how certain conditions in section 469 (which deals with creditors who are financial traders) are to be applied, specifically regarding when assets are of the same kind and when an asset is beneficially owned by a connected company.

• Two assets are treated as being of the same kind if a recognised stock exchange would treat them as such, or would do so if they were dealt with on such an exchange.
• An asset is beneficially owned by a connected company if the company owning it is connected to the company that is the debtor under the loan relationship represented by that asset.
• Whether a connection exists between the two companies at any point in an accounting period is determined by applying the connection tests in section 466 at that specific point in time.
• When testing for a connection in this context, the rule in section 468 (which allows connections to be ignored in certain circumstances) does not apply.