CTA 2009 Part 5 loan relationships RAAR: scope, operation, policy carve-out and interaction with unallowable purpose rule and GAAR
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Practice notes
Practice Note: Loan relationships—the main tax rules
As set out in detail in the above Practice Note, the default position is that a company’s credits and debits—broadly, profits and losses—arising from its loan relationships are recognised for corporation tax within the loan relationships regime by reference to the company’s accounting profit and loss, as shown in its relevant accounts prepared in accordance with generally accepted accounting practice (GAAP). Put differently, GAAP-based accounts determine whether amounts exist, how they are measured and when they arise for taxation in relation to those loan relationships for corporation tax purposes. This is often summarised as ‘tax follows the accounts’. The statutory rules are found principally in Part 5 of the Corporation Tax Act 2009 (CTA 2009) (ss 292–476), with additional provisions contained in Part 6 (CTA 2009, ss 477–569). There are, nevertheless, specific situations in which the loan relationships rules move away from reliance on a company’s accounts. One such case is where the anti-avoidance provisions in Part 5 are engaged...
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Web page updated on 21/05/2026
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Date [ date ] Parties [ name of Landlord ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Landlord) [ name of Tenant ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Tenant) [ [ name of Guarantor ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Guarantor) ] [ [ name of Mortgagee ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Mortgagee) ] Definitions Within this Deed, the terms below shall be interpreted as follows: [ Annual Rent • the annual sum reserved under the Lease; ] [ Insurance Rent • the Tenant’s share of the Landlord’s costs of insuring the Property (as set out in the Lease); ] Lease • the lease of the Property dated [ date ], entered into between (1) [ the Landlord OR [ name ...
I, [ name ], of [ address ], solemnly and sincerely state that: [ Matters to be verified, set out in numbered paragraphs ] I make this solemn statement in good conscience, believing it to be true, and pursuant to the provisions of the Statutory Declarations Act 1835. DECLARED at [ details ] this [ day ] day of [ month and year ] Before me ................................................................................ [ signature of the person before whom the declaration is made ] A [ commissioner for oaths OR [ solicitor OR [ insert other qualification ] ] authorised to administer oaths ]...
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