13(1)In subsection (4) of section 247 of that Act (payments between companies), for “for corporation tax charges on income of the payer company” there shall be substituted “deductible payments in relation to the payer company for the purposes of corporation tax”.
(2)After that subsection there shall be inserted the following subsection—
“(4A)The reference in subsection (4) above to a payment which is a deductible payment in relation to a company for the purposes of corporation tax is a reference to any payment which is—
(a)a charge on income of that company for those purposes; or
(b)a payment of interest in relation to which a debit falls to be brought into account in the case of that company for the purposes of Chapter II of Part IV of the Finance Act 1996 (loan relationships).”