Section 154 Interpretation of sections 153A and 153BF8

F1(1)

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(2)

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(3)

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(4)

Any reference to a guarantee includes—

(a)

a reference to a surety, and

(b)

a reference to any other relationship, arrangements, connection or understanding (whether formal or informal) such that the person making the loan to the F2borrower has a reasonable expectation that in the event of a default by the borrower the person will be paid by, or out of the assets of, one or more companies.

F3(4A)

But any implicit support is not to be regarded as a guarantee.

F4(5)

A person has a participatory relationship with another person at any time if provision relating to financing arrangements made or imposed between them at that time would meet the participation condition in section 148.

F5(5A)

“Borrowing” includes the issuing of a security.

(5B)

“Implicit support” means any incidental benefit, in relation to borrowing by a company, that it is reasonable to assume would arise to the company as a result of it having a participatory relationship with one or more other companies.

F6(6)

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F7(7)

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Annotations

Textual amendments

F1: S. 154(1)-(3) omitted (with effect in accordance with Sch. 6 para. 12 of the amending Act) by virtue of Finance Act 2026 (c. 11), Sch. 6 paras. 4(5)(b), 12
F2: Word in s. 154(4)(b) substituted (with effect in accordance with Sch. 6 para. 12 of the amending Act) by Finance Act 2026 (c. 11), Sch. 6 paras. 4(5)(c), 12
F3: S. 154(4A) inserted (with effect in accordance with Sch. 6 para. 12 of the amending Act) by Finance Act 2026 (c. 11), Sch. 6 paras. 4(5)(d), 12
F4: S. 154(5) substituted (with effect in accordance with Sch. 6 para. 12 of the amending Act) by Finance Act 2026 (c. 11), Sch. 6 paras. 4(5)(e), 12
F5: S. 154(5A)(5B) inserted (with effect in accordance with Sch. 6 para. 12 of the amending Act) by Finance Act 2026 (c. 11), Sch. 6 paras. 4(5)(f), 12
F6: S. 154(6) omitted (with effect in accordance with Sch. 6 para. 12 of the amending Act) by virtue of Finance Act 2026 (c. 11), Sch. 6 paras. 4(5)(g), 12
F7: S. 154(7) omitted (with effect in accordance with Sch. 6 para. 12 of the amending Act) by virtue of Finance Act 2026 (c. 11), Sch. 6 paras. 4(5)(g), 12
F8: Words in s. 154 heading substituted (with effect in accordance with Sch. 6 para. 12 of the amending Act) by Finance Act 2026 (c. 11), Sch. 6 paras. 4(5)(a), 12

Notes on Part 4

Modifications

C1: Pt. 4 excluded by 2010 c. 4, s. 938N (as inserted (19.7.2011) by Finance Act 2011 (c. 11), Sch. 5 para. 2)
C2: Pt. 4 excluded (1.10.2011) by Postal Services Act 2011 (c. 5), s. 93(2)(3), Sch. 2 para. 6(2); S.I. 2011/2329, art. 3
C3: Pt. 4 excluded (1.4.2012) by Budget Responsibility and National Audit Act 2011 (c. 4), s. 29, Sch. 4 para. 3(2); S.I. 2011/2576, art. 5
C4: Pt. 4 excluded (with effect in accordance with s. 148 of the amending Act) by Finance Act 2012 (c. 14), s. 129(11) (with s. 147, Sch. 17)