Section 329 — Corporation Tax Act 2009: Pre-loan relationship and abortive expenses

Pre-loan relationship and abortive expenses 329 1 This section applies if—

a a company may enter into a loan relationship or related transaction but has not yet done so, b it incurs any expenses for purposes connected—

i with entering into it, or ii with giving effect to any obligation which might arise under it, and c had the company entered into the relationship or transaction, the expenses would be expenses within section 306A(1)(c) .

2 The expenses are treated as expenses in relation to which debits may be brought into account in accordance with section 307(2) to the same extent as if the company had entered into the relationship or transaction.