Section 153A | Certain guarantees not capable of being arm’s length

Where—

(a)the actual provision includes provision for the borrowing of an amount,

(b)the amount would not have been lent between independent enterprises but for a guarantee, and

(c)such a guarantee was provided by a person with whom the borrower has a participatory relationship,

provision for the guarantee (to the extent it relates to the borrowing of that amount) is never to be regarded as arm’s length provision for the purposes of this Part.