Search Legislation

Finance Act 1996

 Help about what version

What Version

 Help about advanced features

Advanced Features

Changes over time for: Section 91A

 Help about opening options

Version Superseded: 01/04/2009

Status:

Point in time view as at 21/07/2008. This version of this provision has been superseded. Help about Status

Close

Status

You are viewing this legislation item as it stood at a particular point in time. A later version of this or provision, including subsequent changes and effects, supersedes this version.

Note the term provision is used to describe a definable element in a piece of legislation that has legislative effect – such as a Part, Chapter or section.

Changes to legislation:

There are currently no known outstanding effects for the Finance Act 1996, Section 91A. Help about Changes to Legislation

Close

Changes to Legislation

Revised legislation carried on this site may not be fully up to date. At the current time any known changes or effects made by subsequent legislation have been applied to the text of the legislation you are viewing by the editorial team. Please see ‘Frequently Asked Questions’ for details regarding the timescales for which new effects are identified and recorded on this site.

[F191AShares subject to outstanding third party obligationsU.K.

(1)This section applies for the purposes of corporation tax in relation to [F2the times in a company’s accounting period during which]

(a)that company (“the investing company”) holds a share in another company (“the issuing company”),

(b)the share is subject to outstanding third party obligations (see subsection (5)), and

(c)the share is an interest-like investment (see subsections (7) and (8)).

(2)This Chapter shall have effect for the accounting period of the investing company in accordance with subsection (3) below as if [F3during those times]

(a)the share were rights under a creditor relationship of that company, and

(b)any distribution in respect of the share were not a distribution F4....

[F5(2A)No debits are to be brought into account by the investing company for the purposes of this Chapter as respects the share.]

(3)The F6... credits to be brought into account by the investing company for the purposes of this Chapter as respects the share must be determined on the basis of fair value accounting.

(4)[F7In determining those F8... credits there are to be left out of account amounts] in respect of any transaction (or series of transactions) which (apart from the assumption in subsection (8)(b) below) would have the effect of causing the condition in paragraph (a) or (b) of subsection (7) below not to be satisfied.

(5)For the purposes of this section, the cases where a share is subject to outstanding third party obligations are those cases where—

(a)the share is subject to [F9, or will or might under any relevant arrangements be subject to,] obligations of any description in subsection (6) below,

(b)the obligations are obligations of a person other than the investing company [F10or are obligations of the investing company which, under any relevant arrangements, will or might be discharged directly or indirectly by any other person] , and

(c)the obligations are yet to be discharged,

and where a share is subject to any such obligations, they are for the purposes of this section the “third party obligations” in the case of that share.

[F11(5A)For the purposes of subsection (5) above—

(a)“arrangements” includes any agreement or understanding (whether or not legally enforceable),

(b)arrangements are “relevant” if they were entered into at any time on or before the share was issued.]

(6)The descriptions of obligation are—

(a)an obligation to meet unpaid calls on the share;

(b)an obligation (not falling within paragraph (a) above) to make a contribution to the capital of the issuing company that could affect the value of the share.

(7)In this section “interest-like investment” means a share whose nature is such that the fair value of the share—

(a)is likely to increase at a rate which represents a return on an investment of money at a commercial rate of interest F12..., and

(b)is unlikely to deviate to a substantial extent from that rate of increase.

Fluctuations in value resulting from changes in exchange rates are to be left out of account for the purposes of [F13this subsection].

(8)For the purposes of subsection (7) above, it shall be assumed—

(a)that any third party obligations will be met in the amounts, and at the time, at which they are due, and

(b)that no transaction (or series of transactions) intended to cause the condition in paragraph (a) or (b) of that subsection not to be satisfied will be [F14or has been] entered into.

(9)For the purposes of this section, the fair value of a share that is subject to outstanding third party obligations must include the fair value of the obligations.

(10)For the purposes of this section a company shall be treated as continuing to hold a share notwithstanding that the share has been transferred to another person—

(a)under a repo or stock lending arrangement, or

(b)under a transaction which is treated by section 26 of the Taxation of Chargeable Gains Act 1992 as not involving any disposal.

[F15(11)In this section “share” does not include a share in a building society.]]

Textual Amendments

F1S. 91A and cross-heading inserted (with effect in accordance with Sch. 7 para. 10(7) of the amending Act) by Finance (No. 2) Act 2005 (c. 22), Sch. 7 para. 10(1)(2)

F2Words in s. 91A(1) substituted (with effect in accordance with Sch. 6 para. 13(6)-(8) of the amending Act) by Finance Act 2006 (c. 25), Sch. 6 para. 13(2)

F3Words in s. 91A(2) inserted (with effect in accordance with Sch. 6 para. 13(6)-(8) of the amending Act) by Finance Act 2006 (c. 25), Sch. 6 para. 13(3)

F4Words in s. 91A(2)(b) omitted (with effect in accordance with Sch. 22 para. 6(2) of the amending Act) by virtue of Finance Act 2008 (c. 9), Sch. 22 para. 6(1)(a)

F5S. 91A(2A) inserted (with effect in accordance with Sch. 22 para. 9 of the amending Act) by Finance Act 2008 (c. 9), Sch. 22 para. 7(2)

F6Words in s. 91A(3) omitted (with effect in accordance with Sch. 22 para. 9 of the amending Act) by virtue of Finance Act 2008 (c. 9), Sch. 22 para. 7(3)

F7Words in s. 91A(4) substituted (with effect in accordance with Sch. 5 para. 12(4)(5) of the amending Act) by Finance Act 2007 (c. 11), Sch. 5 para. 12(2)

F8Words in s. 91A(4) omitted (with effect in accordance with Sch. 22 para. 9 of the amending Act) by virtue of Finance Act 2008 (c. 9), Sch. 22 para. 7(3)

F9Words in s. 91A(5)(a) inserted (with effect in accordance with Sch. 6 para. 13(6)-(8) of the amending Act) by Finance Act 2006 (c. 25), Sch. 6 para. 13(4)(a)

F10Words in s. 91A(5)(b) inserted (with effect in accordance with Sch. 6 para. 13(6)-(8) of the amending Act) by Finance Act 2006 (c. 25), Sch. 6 para. 13(4)(b)

F11S. 91A(5A) inserted (with effect in accordance with Sch. 6 para. 13(6)-(8) of the amending Act) by Finance Act 2006 (c. 25), Sch. 6 para. 13(5)

F12Words in s. 91A(7)(a) omitted (with effect in accordance with Sch. 22 para. 19(3) of the amending Act) by virtue of Finance Act 2008 (c. 9), Sch. 22 para. 19(2)(a)

F13Words in s. 91A(7) substituted (with effect in accordance with Sch. 22 para. 12 of the amending Act) by Finance Act 2008 (c. 9), Sch. 22 para. 10(2)

F14Words in s. 91A(8)(b) inserted (with effect in accordance with Sch. 22 para. 12 of the amending Act) by Finance Act 2008 (c. 9), Sch. 22 para. 10(3)

F15S. 91A(11) inserted (with effect in accordance with Sch. 5 para. 12(6) of the amending Act) by Finance Act 2007 (c. 11), Sch. 5 para. 12(3)

Modifications etc. (not altering text)

C1Pt. 4 Ch. 2 modified by 1988 c. 1, s. 774B(5)(a) (as inserted (with effect in accordance with Sch. 6 para. 6(2)-(7) of the amending Act) by Finance Act 2006 (c. 25), Sch. 6 para. 6(1))

Back to top

Options/Help

Print Options

You have chosen to open The Whole Act

The Whole Act you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.

Would you like to continue?

You have chosen to open The Whole Act as a PDF

The Whole Act you have selected contains over 200 provisions and might take some time to download.

Would you like to continue?

You have chosen to open The Whole Act without Schedules

The Whole Act without Schedules you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.

Would you like to continue?

You have chosen to open The Whole Act without Schedules as a PDF

The Whole Act without Schedules you have selected contains over 200 provisions and might take some time to download.

Would you like to continue?

You have chosen to open the Whole Act

The Whole Act you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.

Would you like to continue?

You have chosen to open the Whole Act without Schedules

The Whole Act without Schedules you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.

Would you like to continue?

You have chosen to open Schedules only

The Schedules you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.

Would you like to continue?

Close

Legislation is available in different versions:

Latest Available (revised):The latest available updated version of the legislation incorporating changes made by subsequent legislation and applied by our editorial team. Changes we have not yet applied to the text, can be found in the ‘Changes to Legislation’ area.

Original (As Enacted or Made): The original version of the legislation as it stood when it was enacted or made. No changes have been applied to the text.

Point in Time: This becomes available after navigating to view revised legislation as it stood at a certain point in time via Advanced Features > Show Timeline of Changes or via a point in time advanced search.

Close

See additional information alongside the content

Geographical Extent: Indicates the geographical area that this provision applies to. For further information see ‘Frequently Asked Questions’.

Show Timeline of Changes: See how this legislation has or could change over time. Turning this feature on will show extra navigation options to go to these specific points in time. Return to the latest available version by using the controls above in the What Version box.

Close

Opening Options

Different options to open legislation in order to view more content on screen at once

Close

More Resources

Access essential accompanying documents and information for this legislation item from this tab. Dependent on the legislation item being viewed this may include:

  • the original print PDF of the as enacted version that was used for the print copy
  • lists of changes made by and/or affecting this legislation item
  • confers power and blanket amendment details
  • all formats of all associated documents
  • correction slips
  • links to related legislation and further information resources
Close

Timeline of Changes

This timeline shows the different points in time where a change occurred. The dates will coincide with the earliest date on which the change (e.g an insertion, a repeal or a substitution) that was applied came into force. The first date in the timeline will usually be the earliest date when the provision came into force. In some cases the first date is 01/02/1991 (or for Northern Ireland legislation 01/01/2006). This date is our basedate. No versions before this date are available. For further information see the Editorial Practice Guide and Glossary under Help.

Close

More Resources

Use this menu to access essential accompanying documents and information for this legislation item. Dependent on the legislation item being viewed this may include:

  • the original print PDF of the as enacted version that was used for the print copy
  • correction slips

Click 'View More' or select 'More Resources' tab for additional information including:

  • lists of changes made by and/or affecting this legislation item
  • confers power and blanket amendment details
  • all formats of all associated documents
  • links to related legislation and further information resources