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Legislation
Corporation Tax Act 2010

Crossheading Equity holders

  • Section 158 Meaning of “equity holder”
  • Section 159 Use of relevant company's assets
  • Section 160 Meaning of “ordinary shares”
  • Section 161 Meaning of “restricted right to dividends”
  • Section 162 Meaning of “normal commercial loan”
  • Section 163 Normal commercial loans: company's results or value of assets
  • Section 164 Sections 160 and 162: supplementary
  • Section 164A Loan forming part of tier two capital
  1. Equity holders
  2. Meaning of “equity holder”

Section 158 | Meaning of “equity holder”

From legislation.gov.uk

(1)An equity holder of a company (“the relevant company”) is any person who—

(a)holds ordinary shares in the company (see section 160), or

(b)is a loan creditor of the company in relation to a loan other than a normal commercial loan (see section 162).

(2)For the purposes of subsection (1)(b) a person is a loan creditor of a company if the person is a creditor in respect of any redeemable loan capital issued by the company or in respect of a debt incurred by the company—

(a)for any money borrowed or capital assets acquired by the company,

(b)for any right to receive income created in favour of the company, or

(c)for consideration the value of which to the company was, at the time when the debt was incurred, substantially less than the amount of the debt (including any premium on the debt).

(3)Subsection (1) is subject to section 159.

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