Outstanding loans made to a connected party or parties

Amounts outstanding means capital sums owing under the terms of the loan, together with any interest or other charges due but remaining unpaid.

Do not include:

• the purchase of or subscription to debentures
• debenture stock
• loan stock
• bonds
• certificates of deposit
• other documents creating or acknowledging indebtedness that are listed or dealt with on a recognised stock exchange or offered to the public

Where a guarantee of a loan is made the amount of the loan is the amount guaranteed.

The term 'connected' is as defined in Section 993/4 of Income Tax Act 2007.