Finance Act 2000

Schedule 9 to the Finance Act 1996

44 (1) Schedule 9 to the [1996 c. 8.] Finance Act 1996 (computational provisions in relation to loan relationships) is amended as follows.

(2) In paragraph 11 (transactions not at arm’s length), in sub-paragraph (3) for paragraphs (a) and (b) substitute—

“(a) in the case of any related transaction between two companies that are—

(i) members of the same group, and

(ii) within the charge to corporation tax in respect of that transaction; or

(b) in relation to a member of a group of companies, in the case of any transaction which is part of a series of transactions having the same effect as a transaction falling within paragraph (a) above.”

(3) In that paragraph, for sub-paragraph (5) substitute—

“(5) In this paragraph references to a company which is a member of a group of companies shall be construed in accordance with section 170 of the Taxation of Chargeable Gains Act 1992.”

(4) In paragraph 12 (continuity of treatment), in sub-paragraph (1), for paragraphs (a) and (b) substitute—

“(a) a related transaction between two companies that are—

(i) members of the same group, and

(ii) within the charge to corporation tax in respect of that transaction,

(b) a series of transactions having the same effect as a related transaction between two companies each of which—

(i) has been a member of the same group at any time in the course of that series of transactions, and

(ii) is within the charge to corporation tax in respect of the related transaction,”.

(5) The above amendments, and the main amendments so far as they apply for the purposes of paragraphs 11 and 12 of Schedule 9 to the [1996 c. 8.] Finance Act 1996, have effect in relation to transactions entered into, or series of transactions begun, on or after 1st April 2000.