7(1)Section 91A of FA 1996 (shares treated as loan relationship: shares subject to outstanding third party obligations which are interest-like investments) is amended as follows.U.K.
(2)After subsection (2) insert—
“(2A)No debits are to be brought into account by the investing company for the purposes of this Chapter as respects the share.”
(3)In subsections (3) and (4), omit “debits and”.
8(1)Section 91B of FA 1996 (shares treated as loan relationship: non-qualifying shares) is amended as follows.U.K.
(2)After subsection (2) insert—
“(2A)No debits are to be brought into account by the investing company for the purposes of this Chapter as respects the share.”
(3)In subsections (3) and (4), omit “debits and”.
(4)After subsection (6) insert—
“(6A)Where a share is a non-qualifying share for the purposes of this section by reason of the Condition in section 91E being satisfied—
(a)subsection (2A) does not apply in relation to the share, but
(b)the amount of the debits brought into account by the investing company as respects the share are not to exceed the amount of the credits brought into account in respect of the associated transactions under Schedule 26 to the Finance Act 2002.”
9U.K.The amendments made by paragraphs 7 and 8 have effect in relation to accounting periods ending on or after 12 March 2008 but, in the case of an accounting period beginning before that date, only if the debits relate to any time on or after that date.