Paragraph 2

United Kingdom

(1)

In this Part of this Schedule “loan” includes—

(a)

any form of credit;

(b)

a payment that is purported to be made by way of a loan.

(2)

For the purposes of F1paragraphs 1 and 1A, P makes a “quasi-loan” to a relevant person if (and when) P acquires a right (the “acquired debt”)—

(a)

which is a right to a payment or a transfer of assets, and

(b)

in respect of which the condition in sub-paragraph (3) is met.

(3)

The condition is met in relation to a right if there is a connection (direct or indirect) between the acquisition of the right and—

(a)

a payment made, by way of a loan or otherwise, to the relevant person, or

(b)

a transfer of assets to the relevant person.

(4)

Where a quasi-loan or a loan made by P to a relevant person is replaced, directly or indirectly, by a loan or another loan (the “replacement loan”), references in F2paragraphs 1 and 1A to the loan are references to the replacement loan.

(5)

Where a loan or a quasi-loan made by P to a relevant person is replaced, directly or indirectly, by a quasi-loan or another quasi-loan (the “replacement quasi-loan”), references in F3paragraphs 1 and 1A to the quasi-loan are references to the replacement quasi-loan.

F4(6)

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Annotations

Textual amendments

F1: Words in Sch. 11 para. 2(2) substituted (22.7.2020) by Finance Act 2020 (c. 14), Sch. 2 para. 27(a)
F2: Words in Sch. 11 para. 2(4) substituted (22.7.2020) by Finance Act 2020 (c. 14), Sch. 2 para. 27(b)
F3: Words in Sch. 11 para. 2(5) substituted (22.7.2020) by Finance Act 2020 (c. 14), Sch. 2 para. 27(c)
F4: Sch. 11 para. 2(6) omitted (22.7.2020) by virtue of Finance Act 2020 (c. 14), Sch. 2 para. 4

Notes on Meaning of “loan” and “quasi loan”

Textual amendments

F1: Sch. 11 para. 2 cross-heading substituted (22.7.2020) by Finance Act 2020 (c. 14), Sch. 2 para. 3