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Legislation
Income Tax Act 2007

Crossheading The requirements

  • Section 286ZA The risk-to-capital requirement
  • Section 286A The UK permanent establishment requirement
  • Section 286B The financial health requirement
  • Section 287 The maximum qualifying investment requirement
  • Section 288 The no guaranteed loan requirement
  • Section 289 The proportion of eligible shares requirement
  • Section 290 The trading requirement
  • Section 291 The carrying on of a qualifying activity requirement
  • Section 292 Ceasing to meet requirements because of administration or receivership
  • Section 292A The maximum amount raised annually through risk finance investments requirement
  • Section 292AA Maximum risk finance investments when relevant holding is issued requirement
  • Section 292AB Maximum risk finance investments during the 5-year post-investment period requirement
  • Section 292B The spending of money raised by SEIS investment requirement
  • Section 293 The use of the money raised requirement
  • Section 294 The relevant company to carry on the relevant qualifying activity requirement
  • Section 294A The permitted company age requirement
  • Section 295 The unquoted status requirement
  • Section 296 The control and independence requirement
  • Section 297 The gross assets requirement
  • Section 297A The number of employees requirement
  • Section 297B The proportion of skilled employees requirement
  • Section 298 The qualifying subsidiaries requirement
  • Section 299 The property managing subsidiaries requirement
  • Section 299A The no disqualifying arrangements requirement
  1. The requirements
  2. The no guaranteed loan requirement

Section 288 | The no guaranteed loan requirement

From legislation.gov.uk

(1)The requirement of this section is that there are no securities relating to a guaranteed loan in the relevant holding.

(2)For the purposes of this section, a security relates to a guaranteed loan if (and only if) there are arrangements for the investing company to be or to become entitled to receive anything (whether directly or indirectly) from a third party in the event of the failure by any person to comply with—

(a)the terms of the loan to which the security relates, or

(b)the terms of the security.

(3)For the purposes of subsection (2) it does not matter whether the arrangements apply in all cases of a failure to comply or only in some such cases.

(4)For the purposes of this section “third party” means any person except—

(a)the relevant company, and

(b)if the relevant company is a parent company that meets the trading requirement in section 290(1)(b), the subsidiaries of that company.

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