Overview of connection

There are four cases where the debtor company and the creditor are connected in which the late interest rules potentially apply. However, following changes in FA15, two of these categories have now been removed.

(1) Connected through control: S374 (now removed)

CTA09/S374 applies the late interest rule where the debtor company and creditor company are connected within the meaning of CTA09/S466. This is where the:

borrower ‘controls’ the lender,

the lender controls the borrower, or

both the lender and the borrower are under common control.

See CFM35110 for the meaning of connection and ‘control’.

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