Regulation 3 Relevant securities which are qualifying private placements

(1)

A relevant security which meets the debtor and listing conditions is a qualifying private placement if—

(a)

the conditions specified in regulation 4 are met;

(b)

subject to paragraph (2), the relevant debtor holds a creditor certificate for each creditor;

(c)

the relevant security was entered into by the relevant debtor for genuine commercial reasons, and not as part of a tax advantage scheme; and

(d)

the relevant debtor reasonably believes that the relevant debtor is not a connected person in respect of each creditor.

(2)

Paragraph (1)(b) does not include a creditor certificate which is a cancelled or a withdrawn certificate.

(3)

In this regulation—

(a)

“connected person” is to be determined in accordance with section 993 of ITA 2007 but any rights that a person has as a loan creditor are to be disregarded for the purposes of section 450(3)(d) of CTA 2010^f1; and

(b)

“the debtor and listing conditions” are the conditions specified in paragraphs (a) and (b) of section 888A(2) of ITA 2007.

Annotations

Footnotes

f1: By section 994 of ITA 2007, in section 993 “control” is to be read in accordance with sections 450 and 451 of CTA 2010.