Section 459 | Charities ^F1

(1)This section applies where—^F1

(a)apart from this section, an amount would be a tax-interest expense amount of a company as a result of meeting condition A in section 382 (loan relationship debits),^F1

(b)the creditor is a charity,^F1

(c)the company is a wholly-owned subsidiary of the charity, and^F1

(d)the charitable gift condition is met at all times during the accounting period in which the amount is (or apart from this Part would be) brought into account.^F1

(2)The amount is treated as not being a tax-interest expense amount of the company.^F1

(3)For the purposes of this section the “charitable gift condition” is met at any time at which, were the company to make a donation to the charity at that time, it would be a qualifying charitable donation (see section 190 of CTA 2010).^F1

(4)In this section—^F1

“charity” has the same meaning as in Chapter 2 of Part 6 of CTA 2010 (see section 202 of that Act as read with Schedule 6 to FA 2010), and

“the creditor” means the person who is party to the loan relationship in question as creditor.