I3.742 Guarantees

I3.742 Guarantees

Where a person ('A') acts as guarantor in respect of a loan made to another person ('B') by a third party in connection with B's acquisition of any property, the mere giving of the guarantee is not regarded for the purpose of the pre-owned assets charge as the provision by A of consideration for B's acquisition of the property1.

Where such a guarantee is given and subsequently called, it might be necessary to determine whether the cost to A of meeting the call by the third party lender is a contribution directly or indirectly provided by A to the

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