Part III Income Tax, Corporation Tax and Capital Gains Tax

Chapter I Income Tax and Corporation Tax

Relief for interest and losses etc.

82 Carry forward of non-trading deficit on loan relationships.

F1(1)

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(2)

Section 797 (limits on credit: corporation tax) and section 797A (foreign tax on interest brought into account as a non-trading credit) of the Taxes Act 1988 are amended as follows—

(a)

in section 797(3B)(b), omit “or in accordance with subsection (3) of that section";

(b)

in section 797A(5), at the end of paragraph (a) insert the word “ and ” and omit paragraph (c) and the word “and" preceding it;

F2(c)

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(d)

in section 797A(6), for “specified in subsection (5)(c) above" substitute “ carried forward to the applicable accounting period in pursuance of a claim under section 83(2)(d) of that Act ”;

F2(e)

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(3)

The following amendments of Schedule 28A to the Taxes Act 1988 (change in ownership of investment company: deductions) are consequential on the amendment in subsection (1) above—

(a)

in paragraph 6(da), after “period" insert “ (other than one within sub-paragraph (dc) below) ”;

(b)

in paragraph 6(db), omit “(dc) or";

(c)

in paragraph 6(dc), for “debit given for that accounting period by" substitute “ deficit carried forward to that accounting period under ”;

(d)

in paragraph 7(1)(b), for “debit" substitute “ deficit ”;

(e)

in paragraph 11(2), omit paragraph (a);

(f)

in paragraph 13(1)(ea), after “period" insert “ (other than one within paragraph (ec) below) ”;

(g)

in paragraph 13(1)(eb), omit “(ec) or";

(h)

in paragraph 13(1)(ec), for “debit given for that accounting period by" substitute “ deficit carried forward to that accounting period under ”;

(i)

in paragraph 16(1)(b), for “debit" substitute “ deficit ”.

(4)

The amendments made by this section shall be deemed always to have had effect.