Section 303 — Corporation Tax Act 2009: “Money debt”

“Money debt” 303 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).