Modifications etc. (not altering text)
C1Sch. 9 modified (19.7.2006) by Finance Act 2006 (c. 25), s. 136(2)(d)
Textual Amendments
F1Sch. 9 para. 11B and cross-heading inserted (with effect in accordance with Sch. 22 para. 4(3) of the amending Act) by Finance Act 2008 (c. 9), Sch. 22 para. 4(1)
11B(1)This paragraph applies where in any accounting period (“the relevant accounting period”) a company, with the relevant avoidance intention, disposes of rights under a creditor relationship (in whole or in part) for consideration which—U.K.
(a)is not wholly in the form of money or a debt that falls to be settled by the payment of money, and
(b)is not fully recognised.
(2)The relevant avoidance intention is the intention of eliminating or reducing the credits to be brought into account for the purposes of this Chapter.
(3)Consideration is not fully recognised if, as a result of the application of generally accepted accounting practice, the full amount or value of the consideration is not recognised in determining the company's profit or loss for the relevant accounting period or any other accounting period.
(4)In determining the credits to be brought into account by the company for the period for the purposes of this Chapter, it is to be assumed that the whole of the consideration is recognised in determining the company's profit or loss for the relevant accounting period.
(5)But this paragraph does not apply if paragraph 1(2) of Schedule 28AA to the Taxes Act 1988 (provision not at arm's length) operates in relation to the disposal so as to increase the tax liability of the company.]