Corporation Tax Act 2009 section 479

Relevant non-lending relationships not involving discounts

Section 479 defines when a company has a "relevant non-lending relationship" — that is, a money debt that did not arise from lending but is nonetheless brought within the loan relationships rules for corporation tax purposes.

• A relevant non-lending relationship arises where a company is a creditor or debtor under a money debt that did not originate from a lending transaction and therefore is not a loan relationship
• The debt must fall into one of four categories: it carries interest, gives rise to exchange gains or losses, involves an impairment loss (or reversal credit) or release debit on an unpaid business payment, or has been the subject of a deduction in calculating trade or property business profits and is subsequently released
• A "business payment" is one that, if paid, would be recognised as a receipt of a trade, UK property business, or overseas property business for corporation tax purposes; a "relevant deduction" is one allowed in calculating the profits of such a trade or property business
• This section does not apply where the profits or losses from the debt already fall within the derivative contracts rules (Part 7) or the intangible fixed assets rules (Part 8) of the Corporation Tax Act 2009