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ITA07/S257FH(3) and (4)

Certain payments are not to be treated as ‘value received�. These are as follows:

• Repayment or reimbursement of travelling or other expenses which were incurred by the investor or an associate of the investor in the performance of that person’s duties as a director of the company,
• Interest on money lent to the company or to a person connected with the company, providing that the interest is at a normal commercial rate,
• Dividends or distributions which represent no more than a normal commercial return on the investment,
• Any payment for the supply of goods which does not exceed the market value of those goods,
• Any payment of rent for a property occupied by the company or by a person connected with the company, which does not exceed a reasonable commercial rent for the property,
• Any necessary and reasonable remuneration paid for services rendered to the company or a person connected with the company, where the services are provided in the course of a trade or profession and the remuneration is taken into account in arriving at the profits of that trade or profession. ‘Servicesâ€� in this context excludes secretarial or managerial services, or services of a kind undertaken by the company or connected person to whom they are provided.