Finance Act 1991

98 Corporate bonds

(1) Section 64 of the [1984 c. 43.] Finance Act 1984 shall be amended as follows.

(2) In subsection (2) (which defines “corporate bond” for the purposes of section 64 of the [1984 c. 43.] Finance Act 1984 and accordingly for the purposes of certain other enactments including, by virtue of section 64(1) of the [1979 c. 14.] Capital Gains Tax Act 1979, that Act), in paragraph (b) the words from “as defined” to “1973” shall be omitted.

(3) After that subsection there shall be inserted—

“(2A) In subsection (2)(b) above “normal commercial loan” has the meaning which would be given by sub-paragraph (5) of paragraph 1 of Schedule 18 to the Taxes Act 1988 if for paragraph (a)(i) to (iii) of that sub-paragraph there were substituted the words “corporate bonds (within the meaning of section 64 of the Finance Act 1984)”.”

(4) This section shall have effect—

(a) so far as concerns the application of section 64 for the purposes of section 136A of the Capital Gains Tax Act 1979, in relation to claims on or after 19th March 1991, and

(b) so far as concerns any other application of section 64, in relation to disposals on or after that date (and, in relation to such disposals, shall be regarded as always having had effect).