Part A: Explaining the tests for debt and equity interests

The debt and equity rules determine what is equity in a company and what is debt in an entity for tax purposes.

Last updated 15 April 2018

Tests for debt and equity

Determining whether an interest is a debt interest

Commissioner's power

Determining whether an interest is an equity interest

Related scheme rules

Non-share equity interest

Connected entities

Small business turnover carveout for at call loans between connected entities

Thin capitalisation and the debt and equity tests

Provisions relating to international taxation

Public trading trusts and corporate unit trusts

QC36047