We may not treat the amount of a UPE as an ordinary loan if you have merely misclassified the UPE as a loan in the financial accounts of the trust or the private company. Part B of PS LA 2010/4 outlines the circumstances where we will treat the amounts described as a loan, as an ordinary loan.
Whether an amount is a UPE is a question of fact. However, if you have misclassified the UPE as a loan, we will accept that the amount is a UPE and not a loan if you can satisfy all the conditions in paragraph 32 of PS LA 2010/4. There may be other circumstances where we will accept that a UPE described as a loan is a UPE and not an ordinary loan - see Unable to satisfy every condition in paragraph 32 of PS LA 2010/4.