Section 221 — Corporation Tax Act 2010: Meaning of “making an investment”

Meaning of “making an investment” 221 1 For the purposes of this Part, a company makes an investment in a body at any time when—

a the company makes a loan (whether secured or unsecured) to the body, or b an issue of securities of or shares in the body, for which the company has subscribed, is made to the company.

2 The following provisions of this section apply for the purposes of subsection (1)(a).

3 A company does not make a loan to a body if—

a the body uses overdraft facilities provided by the company, or b the company subscribes for or otherwise acquires securities of the body.

4 If the loan agreement authorises the body to draw down amounts of the loan over a period of time, the loan is treated as made at the time when the first amount is drawn down.