Income Tax Act 2007 section 257BD

The no linked loan requirement

Section 257BD prohibits any loan or credit arrangement linked to an investor's subscription for shares from being made to the investor or their associates during the relevant period.

• No linked loan may be made by any person to the investor or an associate of the investor at any time during period A.
• A linked loan is one that would not have been made, or would not have been made on the same terms, if the investor had not subscribed (or proposed to subscribe) for the relevant shares.
• The concept of a loan extends to the giving of any form of credit to the investor or their associate.
• It also covers the assignment to any person of a debt owed by the investor or their associate.