SAIM9330 | Deduction of tax: qualifying private placements: the regulations: overview

The regulations: overview

SAIM9320 explains the gateway conditions for a debt instrument to be a qualifying private placement. These conditions are supplemented by further conditions, which must also be met and are set out in the Qualifying Private Placement Regulations 2015 (SI 2015/2002).

Regulation 3 defines a qualifying private placement as a ‘relevant security’, which meets the ‘debtor and listing conditions’, and in addition:

• the relevant security conditions in Regulation 4 are met;

• the ‘relevant debtor’ holds a ‘creditor certificate’ for each creditor;

• the relevant security is entered into by the relevant debtor for genuine commercial reasons and not as part of a tax advantage scheme; and

• the relevant debtor reasonably believes that it is not connected to each creditor to the security.

The debtor and listing conditions are the requirements in ITA07/S888A(2) that the security represents a debtor loan relationship of a company and is not listed on a recognised stock exchange.

See SAIM9340 for more on the relevant security.

See SAIM9350 for more on the relevant debtor.

See SAIM9360 for more on the creditor.

See SAIM9370 for more on the creditor certificate.