Income and Corporation Taxes Act 1988

[F1 43A Finance agreement: interpretation. U.K.

(1) A transaction is a finance agreement for the purposes of sections 43B to 43F if in accordance with [F2 generally accepted accounting practice] the accounts of a company which receives money under the transaction would record a financial obligation (whether in respect of a lease creditor or otherwise) in relation to that receipt.

(2) F3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3) The reference to a company’s accounts in subsection (1) shall be taken to include a reference to the consolidated group accounts of a group of companies of which it is a member; and—

(a) “group of companies” means a set of companies which, if each were incorporated in Great Britain, would form a group within the meaning given by section 262(1) of the M1 Companies Act 1985, and

(b) “consolidated group accounts” means accounts of a kind which would satisfy the requirements of section 227 of the Companies Act 1985.

(4) For the purposes of subsection (1) a company shall be treated as receiving any money which—

(a) falls to be taken into account as a receipt for the purpose of calculating the company’s liability to corporation tax, or

(b) would fall to be taken into account as a receipt for that purpose if the company were resident in the United Kingdom.]

Textual Amendments

F1 Ss. 43A-43G and cross-heading inserted (with effect in accordance with s. 110(2) of the amending Act) by Finance Act 2000 (c. 17), s.110(1)

F2 Words in s. 43A(1) substituted (24.7.2002) by Finance Act 2002 (c. 23), s. 103(4)(a)

F3 S. 43A(2) repealed (24.7.2002) by Finance Act 2002 (c. 23), s. 141, Sch. 40 Pt. 3(16)

Marginal Citations

M1 1985 c. 6.