Regulation 11 Interest distributions: effect for recipients

(1)

In relation to a recipient of an interest distribution within the charge to corporation tax, the Corporation Tax Acts have effect as if the interest distribution were interest under a creditor relationship of that person.

(2)

In paragraph (1) “creditor relationship” has the same meaning as in section 302(5) of the Corporation Tax Act 2009 (loan relationships).

(3)

In relation to a recipient of an interest distribution within the charge to income tax, the Income Tax Acts have effect as if the interest distribution were a payment of yearly interest on the date the interest distribution is made.

(4)

If a recipient of an amount distributed by a company—

(a)

is informed (whether directly by the company or by a person who receives the amount on behalf of the recipient) that the amount is distributed to the recipient as an interest distribution, and

(b)

is so informed at, or as soon as reasonably possible after, the time the amount is distributed,

the recipient shall treat that amount as an interest distribution (whether or not the amount distributed is an interest distribution for the purposes of the Corporation Tax Acts in relation to the company).