CFM45440 - Deemed loan relationships: returns from partnerships: conditions for CTA09/S536

Conditions for CTA09/S536

This guidance applies to companies that have interests in partnerships up to 21 April 2009

If one of the two conditions at either CTA09/S537 or S538 are met, then S536 will apply.

CTA09/S537

S537(1) sets out a condition for S536 to apply:

These are that a company has to be party to 바카라 사이트˜relevant arrangements바카라 사이트™ under which:

  • a partnership of which it is a member is or may become entitled to receive a capital contribution from any person (directly or indirectly), and
  • the person making the capital contribution or a connected person receives a sum of money or other asset from that company (directly or indirectly).

CTA09/S538

S538(1) sets out a condition for S536 to apply:

These are that a company has to be party to 바카라 사이트˜relevant arrangements바카라 사이트™ under which:

  • the company makes a capital contribution to a partnership of which it is a member, and
  • the company is allocated less than its 바카라 사이트˜due share바카라 사이트™ of the profits, and
  • the company, or a person connected to the company, is entitled to more than its 바카라 사이트˜due share바카라 사이트™ of the capital.

The terms 바카라 사이트˜relevant arrangements바카라 사이트™, 바카라 사이트˜connected persons바카라 사이트™, 바카라 사이트˜arrangements바카라 사이트™, 바카라 사이트˜tax advantage바카라 사이트™ and 바카라 사이트˜due share바카라 사이트™ are explained at CFM45450.