Corporation Tax Act 2009

523Application of Part 5 to certain shares as rights under creditor relationship
This adran has no associated Nodiadau Esboniadol

(1)This section applies in relation to the times in a company’s accounting period when—

(a)the company holds a share in another company, and

(b)either—

(i)section 524 (shares subject to outstanding third party obligations) applies to the share, or

(ii)that section does not so apply, but section 526 (non-qualifying shares) does.

(2)Part 5 applies as if at those times—

(a)the share were rights under a creditor relationship of the investing company, and

(b)any distribution in respect of the share were not a distribution (and accordingly were within Part 5).

(3)But no debits are to be brought into account by the investing company for the purposes of Part 5 as respects the share, except where—

(a)this section applies because of subsection (1)(b)(ii), and

(b)the associated transactions condition is met (see section 532).

(4)In this Chapter references to “the share” are to the share mentioned in subsection (1).

(5)For special rules about the amounts to be brought into account where this section applies, see section 534.