Section 778 — Corporation Tax Act 2010: Certain payments treated as interest

Certain payments treated as interest 778 1 This section applies if a loan or credit transaction provides for a payment which is not interest but is—

a an annuity or other annual payment falling within Part 5 of ITTOIA 2005 and chargeable to income tax otherwise than as relevant foreign income, or b an annuity or other annual payment which is from a source in the United Kingdom and chargeable to corporation tax under Chapter 7 of Part 10 of CTA 2009 (annual payments not otherwise charged) or regulation 15 of the Unauthorised Unit Trusts (Tax) Regulations 2013.

2 The payment must be treated for the purposes of the Corporation Tax Acts as if it were a payment of interest.