Corporation Tax Act 2009

Finance Act 1996 (c. 8)U.K.

402U.K.The Finance Act 1996 is amended as follows.

403U.K.Omit section 80 (taxation of loan relationships).

404U.K.Omit section 81 (meaning of “loan relationship” etc).

405U.K.Omit section 82 (methods of bringing amounts into account).

406U.K.Omit section 83 (non-trading deficit on loan relationships).

407U.K.Omit section 84 (debits and credits brought into account).

408U.K.Omit section 84A (exchange gains and losses from loan relationships).

409U.K.Omit section 85A (computation in accordance with generally accepted accounting practice).

410U.K.Omit section 85B (amounts recognised in determining a company's profit or loss).

411U.K.Omit section 85C (amounts not fully recognised for accounting purposes).

412U.K.Omit section 87 (accounting method where parties have a connection).

413U.K.Omit section 87A (meaning of “control” in section 87).

414U.K.Omit section 88 (exemption from section 87 in certain cases).

415U.K.Omit section 88A (accounting method where rate of interest is reset).

416U.K.Omit section 90A (change of accounting basis applicable to assets or liabilities).

417U.K.Omit section 91A (shares subject to outstanding third party obligations).

418U.K.Omit section 91B (non-qualifying shares).

419U.K.Omit section 91C (Condition 1 for section 91B(6)(b)).

420U.K.Omit section 91D (Condition 2 for section 91B(6)(b)).

421U.K.Omit section 91E (Condition 3 for section 91B(6)(b)).

422U.K.Omit section 91F (power to add, vary or remove Conditions for section 91B(6)(b)).

423U.K.Omit section 91G (shares beginning or ceasing to be subject to section 91A or 91B).

424U.K.Omit section 91H (payments in return for capital contribution).

425U.K.Omit section 91I (change of partnership shares).

426U.K.Omit section 93C (creditor relationships and benefit derived by connected persons).

427U.K.Omit section 94 (indexed gilt-edged securities).

428U.K.Omit section 94A (loan relationships with embedded derivatives).

429U.K.Omit section 94B (loan relationships treated differently by connected debtor and creditor).

430U.K.Omit section 95 (gilt strips).

431U.K.Omit section 96 (special rules for certain other gilts).

432U.K.Omit section 97 (manufactured interest).

433U.K.Omit section 98 (collective investment schemes).

434U.K.Omit section 99 (insurance companies).

435U.K.Omit section 100 (money debts etc not arising from the lending of money).

436U.K.Omit section 101 (financial instruments).

437U.K.Omit section 103 (interpretation of Chapter).

438U.K.In section 154 (FOTRA securities), omit subsections (2), (3), (5), (6) and (8).

439U.K.In section 203(9) (modification of the Agriculture Act 1993) for “Chapter II of Part IV of this Act” substitute “ Part 5 of the Corporation Tax Act 2009 (loan relationships) ”.

440U.K.Omit Schedule 8 (loan relationships: claims etc relating to deficits).

441U.K.Omit Schedule 9 (loan relationships: special computational provisions).

442U.K.Omit Schedule 10 (loan relationships: collective investment schemes).

443U.K.Omit Schedule 11 (loan relationships: special provisions for insurers).

444(1)Amend Schedule 15 (loan relationships: savings and transitional provisions) as follows.U.K.

(2)Omit—

(a)paragraph 2 (loan relationships terminated before 1st April 1996),

(b)paragraph 3 (basic rules for transitional accounting periods),

(c)paragraph 3A (adjustment of opening value where new accounting basis adopted as from an accounting period beginning on 1st April 1996), and

(d)paragraph 4 (application of accruals basis to pre-commencement relationships).

(3)In paragraph 5—

(a)in sub-paragraph (5) for “this Chapter is” substitute “ this Chapter (as it had effect immediately before 1st April 2009) was ”,

(b)in sub-paragraph (6)(b)—

(i)for “which is” substitute “ which was ”, and

(ii)after “this Chapter” insert “ (as it had effect immediately before 1st April 2009) ”, and

(c)in sub-paragraph (7)—

(i)for “taken to be” substitute “ taken to have been ”,

(ii)for “is treated” substitute “ was treated ”, and

(iii)after “paragraph 4 above” insert “ (as it had effect immediately before 1st April 2009) ”.

(4)In paragraph 6—

(a)in sub-paragraph (3) for “this Chapter” substitute “ Part 5 of the Corporation Tax Act 2009 ”,

(b)for sub-paragraphs (4) to (7) substitute—

“(4)Sub-paragraphs (1) to (3) above do not apply if the company duly made an election for the purposes of this sub-paragraph as it had effect on 30th September 1996.”, and

(c)in sub-paragraph (8)—

(i)for “section 82(2) of this Act” substitute “ section 297 of the Corporation Tax Act 2009 ”, and

(ii)at the end insert “ under Part 5 of that Act ”.

(5)In paragraph 9—

(a)in sub-paragraph (1) after “this Chapter” insert “ or Part 5 of the Corporation Tax Act 2009 ”, and

(b)in sub-paragraph (2)—

(i)after “this Chapter”, in the first place where it occurs, insert “ or that Part ”, and

(ii)after “this Chapter”, in the second place where it occurs, insert “ or, as the case may be, that Part ”.

(6)Omit paragraph 10 (adjustments of opening value for mark to market accounting in the case of chargeable assets).

(7)In paragraph 11 (other adjustments in the case of chargeable assets etc)—

(a)in sub-paragraphs (1) and (3)(a) for “this Chapter” substitute “ Part 5 of the Corporation Tax Act 2009 ”,

(b)in sub-paragraph (6) at the end insert “ under Part 5 of the Corporation Tax Act 2009 ”, and

(c)in sub-paragraph (8) after “this Chapter” insert “ and Part 5 of the Corporation Tax Act 2009 ”.

(8)In paragraph 11A(2) (reduction of paragraph 11 credit where section 251(4) of 1992 Act prevents paragraph 8 loss) for “this Chapter” substitute “ Part 5 of the Corporation Tax Act 2009 ”.

(9)In paragraph 12 (notional closing values of relevant assets)—

(a)in sub-paragraph (2) for “makes” substitute “ made ”, and

(b)in sub-paragraph (3)—

(i)for “is made” substitute “ was made ”, and

(ii)after “this Chapter” insert “ and Part 5 of the Corporation Tax Act 2009 ”.

(10)Omit—

(a)paragraph 13 (further transitional rules where interest under loan relationships),

(b)paragraph 14 (transitional in respect of incidental expenses already allowed), and

(c)paragraph 15 (holdings of unit trusts etc).

(11)In paragraph 16 (bad debt relieved before commencement of FA 1996)—

(a)in sub-paragraph (2)—

(i)after “this Chapter”, in the first place where it occurs, insert “ or Part 5 of the Corporation Tax Act 2009 ”, and

(ii)after “this Chapter”, in the second place where it occurs, insert “ or that Part ”,

(b)in sub-paragraph (3)—

(i)after “this Chapter”, in the first place where it occurs, insert “ and Part 5 of the Corporation Tax Act 2009 ”, and

(ii)after “this Chapter”, in the second place where it occurs, insert “ and that Part ”, and

(c)in sub-paragraph (4) for “falls” substitute “ fell ”.

(12)In paragraph 17 (transitional for overseas sovereign debt etc)—

(a)in sub-paragraph (1) after “this Chapter” insert “ and Part 5 of the Corporation Tax Act 2009 ”, and

(b)in sub-paragraph (3)—

(i)after “this Chapter”, in the first place where it occurs, insert “ and Part 5 of the Corporation Tax Act 2009 ”, and

(ii)after “this Chapter”, in the second place where it occurs, insert “ and that Part ”.

(13)Omit paragraph 18 (transitional for accrued income scheme).

(14)In paragraph 19 (deep discount securities)—

(a)omit sub-paragraphs (1) and (2),

(b)in sub-paragraphs (3A), (4), (5), (6), (7) and (8) for “this Chapter” substitute “ Part 5 of the Corporation Tax Act 2009 ”,

(c)omit sub-paragraph (10), and

(d)in sub-paragraph (11)(b) for “this Chapter is” substitute “ this Chapter was ”.

(15)In paragraph 20 (deep gain securities)—

(a)omit sub-paragraph (1),

(b)in sub-paragraphs (2A) and (3) for “this Chapter” substitute “ Part 5 of the Corporation Tax Act 2009 ”, and

(c)in sub-paragraph (5) for “this Chapter is” substitute “ this Chapter (as it had effect immediately before 1st April 2009) was ”.

(16)In paragraph 21 (convertible securities)—

(a)omit sub-paragraph (1), and

(b)in sub-paragraphs (2) and (4) for “this Chapter” substitute “ Part 5 of the Corporation Tax Act 2009 ”.