{
  "url": "https://openlegislation.uk/corporation-tax-act-2009/section-375",
  "json_url": "https://openlegislation.uk/corporation-tax-act-2009/section-375.json",
  "legislation": "ukpga/2009/4",
  "legislation_title": "Corporation Tax Act 2009",
  "legislation_url": "https://openlegislation.uk/corporation-tax-act-2009",
  "path": "section/375",
  "kind": "section",
  "number": "375",
  "heading": "Loans to close companies by participators etc",
  "text": "(1) The case to which this section applies is where—\n(a) there is a time in the actual accrual period when the close company conditions are met, and\n(b) neither the CIS-based close company conditions nor the CIS limited partnership conditions are met\nand, where subsection (4A) applies, the non-qualifying territory condition is met.\n(2) The close company conditions are that—\n(a) the company which has the debtor relationship (“D”) is a close company, and\n(b) a person (“C”) standing in the position of creditor as respects the loan relationship is—\n(i) a participator in D,\n(ii) the associate of a person who is participator in D,\n(iii) a company of which a participator in D has control,\n(iv) a company in which a participator in D has a major interest,\n(v) a person who controls a company which is a participator in D,\n(vi) the associate of a person within sub-paragraph (v), or\n(vii) a company controlled by a person within sub-paragraph (v).\n(3) The CIS-based close company conditions are that—\n(a) D is a CIS-based close company at all times when the close company conditions are met,\n(b) C is not resident for tax purposes in a non-qualifying territory at any such time, and\n(c) D is a small or medium-sized enterprise for the actual accrual period.\n(4) The CIS limited partnership conditions are that—\n(a) the debt is one which is owed to, or to persons acting for, a CIS limited partnership,\n(b) no member of that partnership is resident for tax purposes in a non-qualifying territory at any time in the actual accrual period,\n(c) D has received written notice from the partnership containing information from which it appears that the condition in paragraph (b) is met, and\n(d) D is a small or medium-sized enterprise for the actual accrual period.\n(4A) This subsection applies if C is a company; and the non-qualifying territory condition is that C is—\n(a) resident for tax purposes in a non-qualifying territory at any time in the actual accrual period, or\n(b) effectively managed in a non-taxing non-qualifying territory at any such time.\n(5) Section 376 applies for the interpretation of this section.",
  "extent": "E+W+S+N.I.",
  "status": null,
  "version": "current",
  "annotations": [
    {
      "type": "F",
      "label": "F1",
      "text": "Words in s. 375(1) inserted (with effect in accordance with Sch. 20 para. 9 of the amending Act) by Finance Act 2009 (c. 10), Sch. 20 para. 3(2)"
    },
    {
      "type": "F",
      "label": "F2",
      "text": "Words in s. 375(3)(b) inserted (with effect in accordance with Sch. 20 para. 9 of the amending Act) by Finance Act 2009 (c. 10), Sch. 20 para. 3(3)"
    },
    {
      "type": "F",
      "label": "F3",
      "text": "Words in s. 375(4)(b) inserted (with effect in accordance with Sch. 20 para. 9 of the amending Act) by Finance Act 2009 (c. 10), Sch. 20 para. 3(3)"
    },
    {
      "type": "F",
      "label": "F4",
      "text": "S. 375(4A) inserted (with effect in accordance with Sch. 20 para. 9 of the amending Act) by Finance Act 2009 (c. 10), Sch. 20 para. 3(4)"
    },
    {
      "type": "C",
      "label": "C1",
      "text": "S. 375 excluded by S.I. 2006/3296, reg. 19(1) (as substituted (with effect in accordance with reg. 1(2)(3) of the amending S.I.) by The Taxation of Securitisation Companies (Amendment) Regulations 2018 (S.I. 2018/143), regs. 1(1), 10(3))"
    }
  ],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/ukpga/2009/4/section/375",
    "retrieved_at": "2026-10-29T09:11:19.560467+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}