Finance Act 1996

21(1)In subsection (6) of section 404 of that Act (dual resident trading companies treated as investing companies)—

(a)in paragraph (a), after sub-paragraph (i) there shall be inserted the following sub-paragraph—

(ia)making payments in relation to which, being payments under loan relationships, any debits fall to be brought into account for the purposes of Chapter II of Part IV of the Finance Act 1996;

(b)in paragraph (c)(i), for “amount” there shall be substituted “aggregate of the debits relating to interest on the company’s debtor relationships that fall to be brought into account for the purposes of Chapter II of Part IV of the Finance Act 1996 and the amounts”;

(c)in paragraph (c)(ii), for “those charges include” there shall be substituted “that aggregate includes”; and

(d)in paragraph (c)(iii), for “the paying of those charges” there shall be substituted “the payment by the company of interest under its debtor relationships and of amounts treated as charges on income”.

(2)After that subsection there shall be inserted the following subsection—

(7)In this section “debtor relationship” has the same meaning as in Chapter II of Part IV of the Finance Act 1996.