Corporation Tax Act 2010 section 764

Relevant change in relation to partnership

Section 764 defines what constitutes a "relevant change" in relation to a partnership for the purposes of the disguised interest rules in this Chapter.

• A relevant change occurs when either the lender (or a connected person) joins the partnership in connection with the arrangement (Condition A), or when there is a change in a member's share of partnership profits linked to the arrangement where that member is the lender, connected to the lender, or becomes connected to the lender (Condition B).
• An event is treated as occurring "in connection with" the arrangement if it happens directly or indirectly as a consequence of the arrangement, or is otherwise connected with it.
• Where Condition A is met, the "person involved in the change" is the person who becomes a member of the partnership; where Condition B is met, it is the member whose profit share changes.
• This definition is relevant to both type 2 and type 3 finance arrangements, as set out elsewhere in the Chapter.