SCHEDULES
F2F2F3Schedule 28AF1Change in ownership of company with investment business: deductions
Sch. 28A inserted (with effect in accordance with Sch. 26 para. 5 of the amending Act) by Finance Act 1995 (c. 4), Sch. 26 para. 3
Sch. 28A heading substituted (28.9.2004 with effect in accordance with art. 1(2) of the amending S.I.) by virtue of The Finance Act 2004, Sections 38 to 40 and 45 and Schedule 6 (Consequential Amendment of Enactments) Order 2004 (S.I. 2004/2310), art. 2, Sch. para. 39(11)
Part IVF19Disallowed debits and non-trading deficits
Sch. 28A Pt. 4 title substituted (with effect in accordance with Sch. 7 para. 3(9) of the amending Act) by Finance (No. 2) Act 2005 (c. 22), Sch. 7 para. 3(8)
9
1
This paragraph has effect in a case to which section 768B applies for determining the debits to be brought into account for the purposes of F4Part 5 of CTA 2009 (loan relationships) for—
a
the accounting period beginning immediately after the change in the ownership of the company; and
b
any subsequent accounting period.
2
The debits so brought into account shall not include the debits falling within paragraph 11 below to the extent (if at all) that the aggregate of—
a
the amount of those debits, and
b
the amount of any debits falling within that paragraph which have been brought into account for the purposes of F5that Part for any previous accounting period ending after the change in the ownership,
exceeds the profits for the accounting period ending with the change in the ownership.
3
The reference in sub-paragraph (2) above to the profits is a reference to profits after making all deductions and giving all reliefs that for the purposes of corporation tax are made or given against the profits, including deductions and reliefs which under any provision are treated as reducing them for those purposes.
9A
1
This paragraph has effect in any case to which section 768B applies where the non-trading deficit mentioned in paragraph 6(dc) above is apportioned by paragraph 7(b) above to the first part of the accounting period being divided.
2
In any such case, none of that non-trading deficit shall be carried forward to—
a
the accounting period beginning immediately after the change in the ownership of the company, or
b
any subsequent accounting period.
10
1
This paragraph has effect in a case to which section 768C applies for determining the debits to be brought into account for the purposes of F6Part 5 of CTA 2009 (loan relationships) for—
a
the accounting period beginning immediately after the change in the ownership of the relevant company; and
b
any subsequent accounting period.
2
The debits so brought into account for any such accounting period shall not include the debits falling within paragraph 11 below to the extent (if at all) that the amount of those debits exceeds the modified total profits for the accounting period.
3
The reference in sub-paragraph (2) above to the modified total profits for an accounting period is a reference to the total profits for that period—
a
reduced, if that period is the period in which the relevant gain accrues, by an amount equal to the amount of the total profits for that period which represents the relevant gain; and
b
after making all deductions and giving all reliefs that for the purposes of corporation tax are made or given against the profits, including deductions and reliefs which under any provision are treated as reducing them for those purposes, other than any reduction by virtue of F7section 461 of CTA 2009.
4
Where by virtue of sub-paragraph (2) above a debit is to any extent not brought into account for an accounting period, that debit may (to that extent) be brought into account for the next accounting period, but this is subject to the application of sub-paragraphs (1) to (3) above to that next accounting period.
10A
1
This paragraph has effect in any case to which section 768C applies where the non-trading deficit mentioned in paragraph 13(1)(ec) below is apportioned by paragraph 16(1)(b) below to the first part of the accounting period being divided.
2
In any such case, none of that non-trading deficit shall be carried forward to—
a
the accounting period beginning immediately after the change in the ownership of the company, or
b
any subsequent accounting period.
11
1
A debit falls within this paragraph if it is a non-trading debit which—
a
F10b
so falls to be brought into account—
i
with an adjustment under F12sections 406 to 412 of that Act (debit relating to amount of discount referable to the relevant accounting period to be brought into account instead for the accounting period in which the security is redeemed); or
ii
on the assumption, specified in F13section 373(1) of that Act, that the interest to which it relates does not accrue until it is paid; and
2
F15. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3
The debits that fall within this paragraph also include any non-trading debit which—
a
is not such a debit as is mentioned in sub-paragraph (1) F16. . . above;
b
is a debit in respect of a debtor relationship of the company or, as the case may be, the relevant company;
c
d
relates to an amount that accrued before the change in the ownership of that company.
4
In this paragraph “post-change accounting period” means the accounting period beginning immediately after the change in the ownership of the company or, as the case may be, the relevant company.
12
Expressions used both in this Part of this Schedule and in F18Part 5 of CTA 2009 have the same meanings in this Part of this Schedule as in that Chapter.
Sch. 28A repealed (1.4.2010 with effect in accordance with s. 1184(1) of the repealing Act) by Corporation Tax Act 2010 (c. 4), Sch. 1 para. 149, Sch. 3 Pt. 1 (with Sch. 2)