Valid from 06/04/2006
(1)This section applies for the interpretation of this Chapter.
(2)“Loan” does not include the purchase of or subscription to debentures, debenture stock, loan stock, bonds, certificates of deposit or other instruments creating or acknowledging indebtedness which are—
(a)listed or dealt in on a recognised stock exchange (within the meaning of section 841 of ICTA), or
(b)offered to the public.
(3)A guarantee of a loan made to or in respect of a [F1person who is or has been a] member or sponsoring employer of a registered pension scheme [F2, or to or in respect of a person who is connected with a [F1person who is or has been a] member or sponsoring employer of a registered pension scheme but is not [F3such a person],] is to be treated as a loan to or in respect of the [F1person who is or has been a] member or sponsoring employer of an amount equal to the amount guaranteed.
(4)If a [F4person who is or has been a] member or sponsoring employer of a registered pension scheme [F5or a person who is connected with a [F4person who is or has been a] member or sponsoring employer of a registered pension scheme but is not [F6such a person]]—
(a)is liable to pay a debt, the right to payment of which constitutes an asset held for the purposes of the pension scheme, but
(b)is not required to pay it by the relevant date,
the debt is to be treated as a loan made by the pension scheme to the [F4person who is or has been a] member or sponsoring employer on that date.
(5)The relevant date is the date by which a person at arm’s length from the pension scheme might be expected to be required to pay the debt.
[F7(6)Section 839 of ICTA (connected persons) applies for the purposes of this section.]
Textual Amendments
F1Words in s. 162(3) inserted (retrospective to 6.4.2006) by Finance Act 2006 (c. 25), s. 161(2), Sch. 23 para. 5(a)
F2Words in s. 162(3) inserted (6.4.2006) by Finance Act 2005 (c. 7), Sch. 10 paras. 6(2), 64(1)
F3Words in s. 162(3) substituted (retrospective to 6.4.2006) by Finance Act 2006 (c. 25), s. 161(2), Sch. 23 para. 5(b)
F4Words in s. 162(4) inserted (retrospective to 6.4.2006) by Finance Act 2006 (c. 25), s. 161(2), Sch. 23 para. 5(a)
F5Words in s. 162(4) inserted (6.4.2006) by Finance Act 2005 (c. 7), Sch. 10 paras. 6(3), 64(1)
F6Words in s. 162(4) substituted (retrospective to 6.4.2006) by Finance Act 2006 (c. 25), s. 161(2), Sch. 23 para. 5(b)
F7S. 162(6) inserted (6.4.2006) by Finance Act 2005 (c. 7), Sch. 10 paras. 6(4), 64(1)
Modifications etc. (not altering text)
C1Pt. 4 modified (6.4.2006) by The Pension Protection Fund (Tax) Regulations 2006 (S.I. 2006/575), regs. 1, 12
C2Pt. 4 modified (6.4.2006) by The Pension Protection Fund (Tax) Regulations 2006 (S.I. 2006/575), regs. 1, 13(5)
C3Pt. 4 modified (6.4.2006) by The Pension Protection Fund (Tax) Regulations 2006 (S.I. 2006/575), regs. 1, 9, 10
C4Pt. 4 modified (6.4.2006) by The Pension Protection Fund (Tax) Regulations 2006 (S.I. 2006/575), regs. 1, 26
Commencement Information
I1Ss. 160-274, 281, Schs. 30-35 in force at 6.4.2006 but any power to make an order or regulations under those provisions may be exercised at any time after Royal Assent, see s. 284