Part G
Avoidance and non-market transactions
Avoidance: specific
GB 51Proportionality between amount of debt and ownership interests
This section applies when—
- a person has ownership interests in a company or a trustee who is a linked trustee for the person under section FE 4 (Some definitions) has ownership interests in the company; and
- an arrangement affects the relationship between the level of an ownership interest in the company relating to the person and the company's debt relating to the person; and
- the arrangement has an effect of defeating the intent and application of subpart FE (Interest apportionment on thin capitalisation).
The effect of the arrangement on the proportionality between the level of an ownership interest in the company relating to the person and the company's debt relating to the person is disregarded for the purposes of subpart FE.
Notes
- Section GB 51: inserted, on , by section 120 of the Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Act 2014 (2014 No 39).