Section 164 — Income Tax Act 2007: The no linked loans requirement

The no linked loans requirement 164 1 No linked loan is to be made by any person, at any time in period A, to the investor or an associate of the investor.

2 In this section “ linked loan ” means any loan which—

a would not have been made, or b would not have been made on the same terms, if the investor had not subscribed for the relevant shares, or had not been proposing to do so.

3 References in this section to the making by any person of a loan to the investor or an associate of the investor include references—

a to the giving by that person of any credit to the investor or any associate of the investor, and b to the assignment to that person of a debt due from the investor or any associate of the investor.