# Corporation Tax Act 2010, Section 18I: Association through a loan creditor


(1) A company (“A”) is not under the control of another company (“B”) for the purposes of section 18E(4) if—
(a) B is a loan creditor of A,
(b) there is no other connection between A and B, and
(c) either—
(i) B is not a close company, or
(ii) B's relationship to A as a loan creditor arose in the ordinary course of a business which B carries on.
(2) Subsection (3) applies if—
(a) two companies (“A” and “B”) are controlled by the same person who is a loan creditor of each of them,
(b) there is no other connection between A and B, and
(c) either—
(i) the loan creditor is a company which is not a close company, or
(ii) the loan creditor's relationship to each of A and B as a loan creditor arose in the ordinary course of a business which the loan creditor carries on.
(3) In determining for the purposes of this Part whether A and B are associated with each other, rights which the loan creditor has as a loan creditor of A, or as a loan creditor of B, are ignored.
(4) In subsection (2)(a) “control” has the same meaning as in section 18E(4).
(5) In this section—
(a) “connection” includes a connection in the past as well as a connection in the present, and
(b) references to a connection between two companies include any dealings between them.
(6) In this section references to a loan creditor of a company are to be read in accordance with section 453.

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Source: https://www.legislation.gov.uk/ukpga/2010/4/section/18I (the official version)
Page: https://openlegislation.uk/corporation-tax-act-2010/section-18I
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.