7C(1)This paragraph applies in any case where—
(a)the circumstances are as described in paragraph 6D(1) above,
(b)one or more payments (the “balancing payments”) are made by the guarantor company to the issuing company, and
(c)the sole or main reasons for making those payments are that paragraph 1(2) above applies by virtue of paragraph 1B above or that paragraph 6D above applies.
(2)To the extent that the balancing payments made by all the guarantor companies do not in the aggregate exceed the amount TR in paragraph 6D(3) above (total reductions within paragraph 6D(1)(c) above), those payments—
(a)shall not be taken into account in computing for the purposes of corporation tax the profits or losses of the guarantor company or companies or the issuing company, and
(b)shall not for any purpose of the Corporation Tax Acts be regarded as distributions F1. . . .
Textual Amendments
F1Words in Sch. 28AA para. 7C(2)(b) repealed (with effect in accordance with s. 38 of the repealing Act) by Finance (No. 2) Act 2005 (c. 22), Sch. 11 Pt. 2(7), Note