The definition of a loan relationship is not always clear cut, so reference to decided case law is advisable where there is uncertainty.
A company has a loan relationship if:
- Ìý
•ÌýÌýÌýÌý it is either a creditor or a debtor for a money debt (see D1.704) and that debt arises from the lending of money (see MJP Media Services1 in which the Court of Appeal upheld the tribunal decision that the appellant had failed to show that there had been a lending of money for the purposes of the definition of a loan relationship and Swiss Centre2 in which the FTT held that MJP Media Services applied and that therefore that any money debt arising in that case did not arise from a transaction for the lending of money as that term 'does not stretch to include payments to a third party which discharge the debt of another')3; examples of such loan relationships
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Web page updated on 17 Mar 2025 13:17