Income and Corporation Taxes Act 1988

6E Where—

(a) interest is paid by any person under the actual provision,

(b) paragraph 1(2) above applies in relation to the actual provision,

(c) the amount of interest that would have been payable under the arm’s length provision is less than the amount of interest paid under the actual provision (or there would not have been any interest payable),

(d) the person receiving the interest makes a claim under paragraph 6 above or a paragraph 6C claim,

the interest paid under the actual provision, to the extent that it exceeds the amount of interest that would have been payable under the arm’s length provision, shall not be regarded as chargeable under F1 . . . [F2 Chapter 2 of Part 4 of ITTOIA 2005][F3 or required to be brought into account under Part 5 of CTA 2009 as a non-trading credit][F4 and shall not be subject to the provisions of Part 15 of ITA 2007 (deduction of income tax at source)].

Textual Amendments

F1 Words in Sch. 28AA para. 6E repealed (1.4.2009 with effect in accordance with s. 1329(1) of the repealing Act) by Corporation Tax Act 2009 (c. 4), Sch. 1 para. 291(5)(a), Sch. 3 Pt. 1 (with Sch. 2 Pts. 1, 2)

F2 Words in Sch. 28AA para. 6E inserted (6.4.2005 with effect in accordance with s. 883(1) of the amending Act) by Income Tax (Trading and Other Income) Act 2005 (c. 5), Sch. 1 para. 351(3) (with Sch. 2)

F3 Words in Sch. 28AA para. 6E inserted (1.4.2009 with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), Sch. 1 para. 291(5)(b) (with Sch. 2 Pts. 1, 2)

F4 Words in Sch. 28AA para. 6E inserted (3.1.2008 with effect in accordance with art. 1(2) of the amending S.I.) by The Income Tax Act 2007 (Amendment) (No. 3) Order 2007 (S.I. 2007/3506), arts. 1(1), 2(4)