C1C2C3C4C5Part 5Loan Relationships
Pt. 5 applied (with modifications) (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), ss. 990(5), 1184(1) (with Sch. 2)
Pt. 5 modified (15.11.2011 for specified purposes, 30.3.2012 for E.W.) by Localism Act 2011 (c. 20), ss., 240(5)(o), Sch. 24 para. 5; S.I. 2012/628, art. 3(b)
Pt. 5 modified (1.4.2012) by Budget Responsibility and National Audit Act 2011 (c. 4), s. 29, Sch. 4 para. 2; S.I. 2011/2576, art. 5
Chapter 2Basic definitions
303“Money debt”
1
For the purposes of this Part a money debt is a debt which—
a
falls to be settled—
i
by the payment of money,
ii
by the transfer of a right to settlement under a debt which is itself a money debt, or
iii
by the issue or transfer of any share in any company,
b
has at any time fallen to be so settled, or
c
may at the option of the debtor or the creditor fall to be so settled.
2
For the purposes of subsection (1) any option exercisable by either party to settle the debt in any other way than is mentioned in subsection (1)(a) is ignored.
3
A money debt is a debt arising from a transaction for the lending of money for the purposes of this Part if an instrument is issued by any person for the purpose of representing—
a
security for the debt, or
b
the rights of a creditor in respect of the debt.
4
A debt does not arise from a transaction for the lending of money for the purposes of this Part so far as it arises from rights conferred by shares in a company.
5
But see the following provisions (as a result of which some such rights are within this Chapter)—
a
Chapter 3 of Part 6 (OEICs, unit trusts and offshore funds),
b
Chapter 7 of that Part (shares with guaranteed returns etc).
6
For the meaning of “share” see section 476(1).
Pt. 5 applied (with effect in accordance with Sch. 24 paras. 13-16 of the amending Act) by Finance Act 2009 (c. 10), Sch. 24 para. 15(2)(3)