Where a company is party to an arrangement1 which produces for the company a return in relation to any amount which is economically equivalent to interest, Part 5 of the Corporation Tax Act 20092 applies as if the return were a profit arising to the company from a loan relationship3.
For these purposes, a return produced for a company by an arrangement in relation to any amount is 'economically equivalent to interest' if (and only if):
(1) it is reasonable to assume that it is a return by reference to the time value of that amount of money;
**Trials are provided to all LexisPSL and LexisLibrary content, excluding Practice Compliance, Practice Management and Risk and Compliance, subscription packages are tailored to your specific needs. To discuss trialling these LexisPSL services please email customer service via our online form. Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason. Trial includes one question to LexisAsk during the length of the trial.
To view the latest version of this document and millions of others like it, sign-in to LexisLibrary or register for a free trial.
EXISTING USER? SIGN IN
TAKE A FREE TRIAL
0330 161 1234