Section 175 | Application of section 174 where guarantee disallowed

(1)Subsection (2) applies where—

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

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

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

(d)the participation condition, in relation to the actual provision for the borrowing—

(i)would not be satisfied but for section 161 (indirect participation), or

(ii)is satisfied as a result of a notice given under section 148A(3), and the Commissioners for His Majesty's Revenue and Customs consider that the case is analogous to a case that would meet the participation condition only as a result of section 161.

(2)For the purposes of section 174(2), the amount is to be treated as if it had been lent to the guarantor on equivalent terms to the terms on which it was lent to the borrower.

(3)Section 154 (interpretation of section 153A and 153B) applies for the purposes of this section as it applies for the purposes of sections 153A and 153B.