Finance (No. 3) Act 2010

Amendments of Chapter 7 (“financing expense amount” and “financing income amount”)

19 (1) Section 314 (financing income amounts of a company) is amended as follows.

(2) In subsection (1), for “or C” substitute “, C or D”.

(3) After subsection (5) insert—

“(5A) Condition D is that the amount is an amount that would, apart from this Part, be brought into account for the purposes of corporation tax in a relevant accounting period of the company in respect of income that—

(a) is receivable from another company, and

(b) is in consideration of the provision of a guarantee of any borrowing of that other company.”