Section 809CZA: Loan or credit transaction defined
1175.This section defines “loan or credit transaction” for the purposes of sections 809CZB and 809CZC. It is based on section 786(1) and (2) of ICTA.
1176.What is now section 786 of ICTA originally appeared as paragraph 12 of Schedule 13 to FA 1969. It is aimed at artificial arrangements for dressing up payments of interest in another form – for example, arrangements whereby X grants Y an interest-free loan and:
	Y grants X an annuity while the loan is outstanding; or
	Y transfers income-bearing assets to X on the understanding that X will return them when the loan is paid off.
1177.Subsection (1) states the scope of the definition.
1178.Subsections (2) and (3) focus on, respectively, the lending of money and the giving of credit.
1179.Subsections (4) and (5) supplement subsections (2) and (3) respectively.