Taxes Management Act 1970

[F1 109 Corporation tax on close company in connection with loans to participators etc. U.K.

(1) The provisions of [F2 sections 419 and 420] of the principal Act (charge of tax in connection with loans by close companies to participators etc.) directing that tax be assessed and recoverable as if it were an amount of corporation tax shall be taken as applying, subject to the provisions of the Taxes Acts, and to any necessary modifications, all enactments applying generally to corporation tax, including those relating to the assessing, collecting and receiving of corporation tax, those conferring or regulating a right of appeal and those concerning administration, penalties, interest on unpaid tax and priority of tax in cases of insolvency under the law of any part of the United Kingdom.

(2) Section 86 of this Act shall apply in relation to tax under the said [F2 sections 419 and 420] as if [F3 the date given by the Table in subsection (4) of the said section 86 were the last day of the three months following the end of the financial year in which the loan or advance was made].

(3) For the purposes of section [F4 87A] of this Act as applied by subsection (1) above, the date when tax [F5 under the said section [F6 419] became due and payable shall be that determined in accordance with subsection [F6 (3)]of that section].

[F7 (3A) If

[F8 (a)] there is such a repayment of the whole or any part of a loan or advance as is referred to in subsection [F9 (4)] of section [F9 419] of the principal Act, [F10 or

(b) there is such a release or writing off of the whole or any part of the debt in respect of a loan or advance as is referred to in that subsection,]

interest under section 87A of this Act on so much of the tax under the said section [F9 419] as is referable to the amount repaid[F11 , released or written off] shall not be payable in respect of any period after the date on which the repayment was made [F12 or the release or writing off occurred].]

(4) Section 91 of this Act shall not apply in consequence of any discharge or repayment of tax under section F2 [419(4)] of the principal Act.

(5) For the purposes of the said section 91, a relief from tax under the said F2 [sections 419 and 420] shall not be treated as affecting tax charged by any assessment unless the assessment is to tax under that section.]

Textual Amendments

F1 Finance Act 1972 (c. 41), s.111, Sch.24 para.13 in relation to times after 5 April 1973 (subject to s.111(3)).

F2 Income and Corporation Taxes Act 1988 (c. 1), Sch. 29 para. 32.

F3 Words substituted by Finance (No.2) Act 1975 (c. 45), s.46(5) in relation to tax charged by assessments where notices issued after 31 July 1975.

F4 Word in s. 109(3) substituted (with effect with respect to loans or advances made (or treated as made) in any accounting period ending after 30.9.1993) by Finance (No. 2) Act 1987 (c. 51), s. 91(2) (with s. 91(4)); S.I. 1992/3066, art. 2(2)(a)

F5 Words in s. 109(3) substituted (with effect with respect to loans or advances made (or treated as made) in any accounting period ending after 30.9.1993) by Finance (No. 2) Act 1987 (c. 51), s. 91(2) (with s. 91(4)); S.I. 1992/3066, art. 2(2)(a)

F6 Words substituted by Income and Corporation Taxes Act 1988 (c. 1), Sch. 29 para. 10(8)(a)

F7 S. 109(3A) inserted (with effect with respect to loans or advances made (or treated as made) in any accounting period ending after 30.9.1993) by Finance (No. 2) Act 1987 (c. 51), s. 91(3) (with s. 91(4)); S.I. 1992/3066, art. 2(2)(a)

F8 Word in s. 109(3A) inserted (with effect in accordance with Sch. 3 para. 6(3) of the amending Act) by Finance Act 1998 (c. 36), Sch. 3 para. 6(2)(a)

F9 Words substituted by Income and Corporation Taxes Act 1988 (c. 1), Sch. 29 para. 10(8)(b)

F10 Words in s. 109(3A) inserted (with effect in accordance with Sch. 3 para. 6(3) of the amending Act) by Finance Act 1998 (c. 36), Sch. 3 para. 6(2)(b)

F11 Words in s. 109(3A) inserted (with effect in accordance with Sch. 3 para. 6(3) of the amending Act) by Finance Act 1998 (c. 36), Sch. 3 para. 6(2)(c)

F12 Words in s. 109(3A) inserted (with effect in accordance with Sch. 3 para. 6(3) of the amending Act) by Finance Act 1998 (c. 36), Sch. 3 para. 6(2)(d)