Part 5Loan Relationships
Chapter 18General and supplementary provisions
Connections between persons
468Connection between companies to be ignored in some circumstances
1
In the case of a company (“the creditor”) which has a creditor relationship, any connection for an accounting period between the creditor and another company which stands in the position of a debtor as respects the debt is ignored for the purposes of the relevant provisions if the creditor is a party to the relationship in circumstances where—
a
conditions A to E in section 469 (creditors who are financial traders) are met, or
b
conditions A, B and C in section 471 (creditors who are insurance companies carrying on basic life assurance and general annuity business) are met.
2
In subsection (1) “the relevant provisions” means any provisions of this Part which apply section 466.
3
Subsection (4) applies if for any accounting period subsection (1) has effect in the case of a creditor relationship of a company.
4
Subsection (1) does not apply for determining whether there is a connection between the two companies for the purposes of so much of any of the relevant provisions or of section 467 as relates to the corresponding debtor relationship.
5
For the purposes of this section and section 469, a company is treated as standing in the position of a debtor if it indirectly stands in that position by reference to a series of loan relationships or relevant money debts.
6
In subsection (5) “relevant money debt” means a money debt which would be a loan relationship if a company directly stood in the position of creditor or debtor.