“Relevant benefits”: loans and related transactions
1.—(1) For the purposes of paragraph (b) of the definition of “relevant benefits” set out in section 3(2), transactions are to be treated as connected with a represented registered party where—
(a) they are regulated transactions or controlled transactions with an authorised participant which are entered into in accordance with Part 4A of the 2000 Act; and
(b) any of the persons or bodies specified in paragraphs (a) to (d) of section 4(1) is also a party to the transaction.
(2) A relevant benefit which is a regulated transaction or a controlled transaction accrues—
(a) from an authorised participant who is a party to the transaction, and
(b) when the transaction is entered into.
(3) In this section “authorised participant”, “controlled transaction” and “regulated transaction” have the same meaning as in Part 4A of the 2000 Act.
Clause 5 works with Clause 3 to extend the donation cap to the provision of loans. This reflects the changes to party finance law in PPERA which were inserted by the Election Administration Act 2006 and which made the provision of loans and credit facilities to political parties a “regulated transaction” or “controlled transaction”. This is vital to avoid the displacement of ‘big money’ donations into long-term ‘loans’.