Section 303 | “Money debt”

(1)For the purposes of this Part a money debt is a debt which—

(a)falls to be settled—

(i)by the payment of money,

(ii)by the transfer of a right to settlement under a debt which is itself a money debt, or

(iii)by the issue or transfer of any share in any company,

(b)has at any time fallen to be so settled, or

(c)may at the option of the debtor or the creditor fall to be so settled.

(2)For the purposes of subsection (1) any option exercisable by either party to settle the debt in any other way than is mentioned in subsection (1)(a) is ignored.

(3)A money debt is a debt arising from a transaction for the lending of money for the purposes of this Part if an instrument is issued by any person for the purpose of representing—

(a)security for the debt, or

(b)the rights of a creditor in respect of the debt.

(4)A debt does not arise from a transaction for the lending of money for the purposes of this Part so far as it arises from rights conferred by shares in a company.

(5)But see the following provisions (as a result of which some such rights are within this Chapter)—

(a)Chapter 3 of Part 6 (OEICs, unit trusts and offshore funds),

(b)Chapter 7 of that Part (shares with guaranteed returns etc).

(6)For the meaning of “share” see section 476(1).