Corporation Tax Act 2010 section 453

"Loan creditor"

Section 453 defines who counts as a "loan creditor" of a company for the purposes of the close companies rules in Part 10 of the Corporation Tax Act 2010.

• A loan creditor is someone who is owed a debt by the company for borrowed money, acquired capital assets, rights to income, or consideration substantially below the debt's value, or who holds redeemable loan capital issued by the company.
• A person who is not the original creditor but holds a beneficial interest in a qualifying debt or loan capital is also treated as a loan creditor to the extent of that interest.
• Banks are excluded from being treated as loan creditors where the debt or loan capital arises from money they have lent to the company in the ordinary course of their banking business.
• Under separate provisions in section 519(2) of CTA 2009, a bond-holder under investment bond arrangements is also treated as a loan creditor in respect of the bond-issuer.