Section 461 — Corporation Tax Act 2010: Exception to section 460

Exception to section 460 461 1 Section 460 does not apply if it is shown that no person has made any arrangements (otherwise than in the ordinary course of a business carried on by the person) as a result of which there is a connection—

a between—

i the making of the loan or advance, and ii the acquisition of control, or b between—

i the making of the loan or advance, and ii the provision by the close company of funds for C.

2 The close company is to be treated for the purposes of subsection (1) as providing funds for C if it directly or indirectly makes a payment or transfers property to, or releases or satisfies (in whole or in part) a liability of, C.