C1C2C3C4C5Part 5Loan Relationships

Annotations:
Modifications etc. (not altering text)
C1

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)

C2

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)

C3

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)

C5

Pt. 5 modified (with effect in accordance with s. 148 of the amending Act) by Finance Act 2012 (c. 14), s. 88(1)(2)(7) (with s. 147, Sch. 17)

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).