Section 469 — Corporation Tax Act 2009: Creditors who are financial traders

Creditors who are financial traders 469 1 This section sets out the conditions referred to in section 468(1)(a).

2 Condition A is that the creditor disposes of or acquires assets representing creditor relationships in the course of carrying on any activities forming an integral part of a trade carried on by it in the accounting period.

3 Condition B is that the asset representing the creditor relationship was acquired in the course of those activities.

4 Condition C is that that asset—

a is listed on a recognised stock exchange at the end of that period, or b is a security the redemption of which must occur within 12 months of its issue.

5 Condition D is that there is a time in that period when assets of the same kind as the asset representing the creditor relationship are beneficially owned by persons other than the creditor.

6 Condition E is that in that period there is not more than 3 months in total during which the equivalent of at least 30% of the assets of that kind is beneficially owned by connected companies.

7 Section 470 supplements this section.