M1Where [F1a company] sustains a loss on the exercise or disposal of a right to receive any amount, being a right to which section 56(2) F2. . . applies, in a case where—
(a)if a profit had arisen from that exercise or disposal, that profit would have been chargeable to [F3corporation] tax by virtue of section 56(2) F4. . . , and
(b)[F5the company is chargeable to corporation tax under Schedule D] in respect of interest payable on that amount,
then the amount of that interest shall be included in the amounts against which [F6the amount of its loss may be set off under section 396.]
Textual Amendments
F1Words in s. 398 substituted (6.4.2007 with effect in accordance with s. 1034(1) of the amending Act) by Income Tax Act 2007 (c. 3), Sch. 1 para. 75(2) (with Sch. 2)
F2Words in s. 398 repealed (6.4.2007 with effect in accordance with s. 1034(1) of the repealing Act) by Income Tax Act 2007 (c. 3), Sch. 1 para. 75(3), Sch. 3 Pt. 1 (with Sch. 2)
F3Words in s. 398(a) inserted (6.4.2007 with effect in accordance with s. 1034(1) of the amending Act) by Income Tax Act 2007 (c. 3), Sch. 1 para. 75(4)(a) (with Sch. 2)
F4Words in s. 398(a) repealed (6.4.2007 with effect in accordance with s. 1034(1) of the repealing Act) by Income Tax Act 2007 (c. 3), Sch. 1 para. 75(4)(b), Sch. 3 Pt. 1 (with Sch. 2)
F5Words in s. 398(b) substituted (6.4.2007 with effect in accordance with s. 1034(1) of the amending Act) by Income Tax Act 2007 (c. 3), Sch. 1 para. 75(5) (with Sch. 2)
F6Words in s. 398 substituted (6.4.2007 with effect in accordance with s. 1034(1) of the amending Act) by Income Tax Act 2007 (c. 3), Sch. 1 para. 75(6) (with Sch. 2)
Marginal Citations
M1Source—1973 s.26(2); 1974 s.30(2)