Corporation Tax Act 2010 section 1063

Section 1062: supplementary

Section 1063 provides supplementary definitions and rules that support the connected persons provisions in section 1062, clarifying what counts as loan capital, when a person is treated as entitled to acquire something, and how associates' rights are attributed.

• Loan capital means debt incurred for money borrowed, capital assets acquired, rights to receive income, or consideration worth substantially less than the debt amount (including any premium)
• A person is treated as entitled to acquire something if they either currently have the right to acquire it at a future date or will become entitled to acquire it in the future
• A person is assumed to hold the rights and powers of their associates in addition to their own when applying sections 1062 and 1063
• The debt amount for the purposes of the undervalue test includes any premium charged on the debt