Finance Act 2002

“(2A)

Subsections (1) and (2) above have effect in relation to Chapter 4 of Part 13 of this Act (sub-contractors in the construction industry) as if the whole of any deduction required to be made under section 559 were in all cases a deduction of income tax.”.

“179A Reallocation within group of gain or loss accruing under section 179

(1)

This section applies where—

(a)

a company (“company A”) is treated by virtue of section 179(3) or (6) as having sold and immediately reacquired an asset at market value, and

(b)

a chargeable gain or an allowable loss accrues to the company on the deemed sale.

(2)

In this section “time of accrual” means—

(a)

in a case where section 179(3) applies, the time at which, by virtue of section 179(4), the gain or loss referred to in subsection (1) above is treated as accruing to company A;

(b)

in a case where section 179(6) applies, the latest time at which the company satisfies the conditions in section 179(7).

(3)

If—

(a)

a joint election under this section is made by company A and a company (“company C”) that was a member of the relevant group at the time of accrual, and

(b)

the conditions in subsections (6) to (8) below are all met,

the chargeable gain or allowable loss accruing on the deemed sale, or such part of it as may be specified in the election, shall be treated as accruing not to company A but to company C.

(4)

In subsection (3) above “the relevant group” means—

(a)

in a case where section 179(3) applies, the group of which company A was a member at the time of accrual;

(b)

in a case where section 179(6) applies, the second group referred to in section 179(5).

(5)

Where two or more elections are made each specifying a part of the same gain or loss, the total amount specified may not exceed the whole of that gain or loss.

(6)

The first condition is that, at the time of accrual, company C—

(a)

was resident in the United Kingdom, or

(b)

owned assets that were chargeable assets in relation to it.

(7)

The second condition is that neither company A nor company C was at that time a qualifying friendly society within the meaning given by section 171(5)).

(8)

The third condition is that company C was not at that time an investment trust, a venture capital trust or a dual resident investing company.

(9)

A gain or loss treated by virtue of this section as accruing to a company that is not resident in the United Kingdom shall be treated as accruing in respect of a chargeable asset held by that company.

(10)

An election under this section must be made—

(a)

by notice to an officer of the Board;

(b)

no later than two years after the end of the accounting period of company A in which the time of accrual fell.

(11)

Any payment by company A to company C, or by company C to company A, in pursuance of an agreement between them in connection with the election—

(a)

shall not be taken into account in computing profits or losses of either company for corporation tax purposes, and

(b)

shall not for any purposes of the Corporation Tax Acts be regarded as a distribution or a charge on income,

provided it does not exceed the amount of the chargeable gain or allowable loss that is treated, as a result of the election, as accruing to company C.

(12)

For the purposes of this section an asset is a “chargeable asset” in relation to a company at a particular time if any gain accruing to the company on a disposal of the asset by the company at that time would be a chargeable gain and would by virtue of section 10(3) form part of its chargeable profits for corporation tax purposes.”.

“7A

In section 179A(12), the words “section 11(2)(b), (c) or (d) of the Taxes Act” shall be treated as substituted for “section 10(3)".”.

“179B Roll-over of degrouping charge on business assets

(1)

Where a company is treated by virtue of section 179(3) or (6) as having sold and immediately reacquired an asset at market value, relief under section 152 or 153 (roll-over relief on replacement of business assets) is available in accordance with this section in relation to any gain accruing to the company on the deemed sale.

(2)

For this purpose, sections 152 and 153 and the other enactments specified in Schedule 7AB apply with the modifications set out in that Schedule.

(3)

Where there has been an election under section 179A, any claim for relief available in accordance with this section must be made by company C rather than company A.

(4)

For this purpose, the enactments modified by Schedule 7AB have effect as if—

(a)

references to company A, except those in sections 152(1)(a) and (1B), 153(1B), 153A(5), 159(1), 175 and 198(1), were to company C;

(b)

the references to “that company” in section 159(1) and “the company” in section 185(3)(b) were to company C;

(c)

the reference to “that trade” in section 198(1) were to a ring fence trade carried on by company C.

(5)

Where there has been an election under section 179A in respect of part only of the chargeable gain accruing on the deemed sale of an asset, the enactments modified by Schedule 7AB and subsections (3) and (4) above apply as if the deemed sale had been of a separate asset representing a corresponding part of the asset; and any necessary apportionments shall be made accordingly.

(6)

A reference in this section to company A or to company C is to the company referred to as such in section 179A.”.

“Any such order may make such consequential amendments of Schedule 7AB as appear to the Treasury to be appropriate.”.

“Disposals by companies with substantial shareholding

192A Exemptions for gains or losses on disposal of shares etc

Schedule 7AC (exemptions for disposal of shares etc by companies with substantial shareholding) has effect.”.

“162A Election for section 162 not to apply

(1)

Section 162 shall not apply where the transferor makes an election under this section.

(2)

An election under this section must be made by a notice given to an officer of the Board no later than the relevant date.

(3)

Except where subsection (4) below applies, the relevant date is the second anniversary of the 31st January next following the year of assessment in which the transfer of the business took place.

(4)

Where, by the end of the year of assessment following the one in which the transfer of the business took place, the transferor has disposed of all the new assets, the relevant date is the first anniversary of the 31st January next following the year of assessment in which the transfer of the business took place.

(5)

For the purposes of subsection (4) above—

(a)

a disposal of any of the new assets by the transferor shall be disregarded if it falls within section 58(1) (transfers between husband and wife); but

(b)

where a disposal of any assets to a person is disregarded by virtue of paragraph (a) above, a subsequent disposal by that person of any of those assets (other than a disposal to the transferor) shall be regarded as a disposal by the transferor.

(6)

All such adjustments shall be made, whether by way of discharge or repayment of tax, the making of assessments or otherwise, as are required to give effect to an election under this section.

(7)

Where, immediately before it was transferred, the business was owned by two or more persons—

(a)

each of them has a separate entitlement to make an election under this section;

(b)

an election made by a person by virtue of paragraph (a) above shall apply only to—

(i)

the share of the amount of the gain on the old assets, and

(ii)

the share of the new assets,

that is attributable to that person for the purposes of this Act.

(8)

The reference in subsection (7) above to ownership by two or more persons includes, in Scotland as well as elsewhere in the United Kingdom, a reference to ownership by a partnership consisting of two or more persons.

(9)

Expressions used in this section and in section 162 have the same meaning in this section as in that one.

But references in this section to new assets also include any shares or debentures that are treated by virtue of one or more applications of section 127 (including that section as applied by virtue of any enactment relating to chargeable gains) as the same asset as the new assets.”.

“105A Shares acquired on same day: election for alternative treatment

(1)

Subsection (2) below applies where an individual—

(a)

acquires shares (“the relevant shares”) of the same class, on the same day and in the same capacity, and

(b)

some of the relevant shares (“the approved-scheme shares”) are shares acquired by him as a result of—

(i)

the exercise of a qualifying option within the meaning of paragraph 1(1) of Schedule 14 to the Finance Act 2000 (enterprise management incentives) in circumstances where paragraph 44, 45 or 46 of that Schedule (exercise of option to acquire shares) applies, or

(ii)

the exercise of an option to which subsection (1) of section 185 of the Taxes Act (approved share option schemes) applies in circumstances where paragraphs (a) and (b) of subsection (3) of that section apply.

(2)

Where the individual first makes a disposal of any of the relevant shares, he may elect for subsections (3) to (5) below to have effect in relation to that disposal and all subsequent disposals of any of those shares.

(3)

In circumstances where section 105 applies, that section shall have effect as if—

(a)

paragraph (a) of subsection (1) of that section required the approved-scheme shares to be treated as acquired by the individual by a single transaction separate from the remainder of the relevant shares (which shall also be treated by virtue of that paragraph as acquired by the individual by a single transaction), and

(b)

subsection (1) of that section required the approved-scheme shares to be treated as disposed of after the remainder of the relevant shares.

(4)

If the relevant shares include shares to which relief under Chapter 3 of Part 7 of the Taxes Act or deferral relief (within the meaning of Schedule 5B to this Act) is attributable—

(a)

paragraph 4(4) of that Schedule has effect as if it required the approved-scheme shares falling within paragraph (a), (b), (c) or (d) of that provision to be treated as disposed of after the remainder of the relevant shares falling within the paragraph in question, and

(b)

section 299 of the Taxes Act has effect for the purposes of section 150A(4) below as if it required—

(i)

the approved-scheme shares falling within paragraph (a), (b), (c) or (d) of subsection (6A) of section 299 of that Act to be treated as disposed of after the remainder of the relevant shares falling within the paragraph in question, and

(ii)

the approved-scheme shares to which subsection (6B) of that section applies to be treated as disposed of after the remainder of the relevant shares to which that subsection applies.

(5)

Where section 127 applies in relation to any of the relevant shares (“the reorganisation shares”), that section shall apply separately to such of those shares as are approved-scheme shares and to the remainder of the reorganisation shares (so that those approved-scheme shares and the remainder of the reorganisation shares are treated as comprised in separate holdings of original shares and identified with separate new holdings).

(6)

In subsection (5)—

(a)

the reference to section 127 includes a reference to that section as it is applied by virtue of any enactment relating to chargeable gains, and

(b)

“original shares” and “new holding” have the same meaning as in section 127 or (as the case may be) that section as applied by virtue of the enactment in question.

(7)

For the purposes of subsection (1) above—

(a)

any shares to which relief under Chapter 3 of Part 7 of the Taxes Act is attributable and which were transferred to an individual as mentioned in section 304 of that Act, and

(b)

any shares to which deferral relief (within the meaning of Schedule 5B to this Act), but not relief under that Chapter, is attributable and which were acquired by an individual on a disposal to which section 58 above applies,

shall be treated as acquired by the individual on the day on which they were issued.

(8)

In this section the references to Chapter 3 of Part 7, section 299 and section 304 of the Taxes Act shall be read as references to those provisions as they apply to shares issued after 31st December 1993 (enterprise investment scheme).

105B Provision supplementary to section 105A

(1)

The provisions of section 105A have effect in the case of any disposal notwithstanding that some or all of the securities disposed of are otherwise identified—

(a)

by the disposal, or

(b)

by a transfer or delivery giving effect to it.

(2)

An election must be made, by a notice given to an officer of the Board, on or before the first anniversary of the 31st January next following the year of assessment in which the individual first makes a disposal of any of the relevant shares.

(3)

Where—

(a)

an election is made in respect of the relevant shares, and

(b)

any shares (“the other shares”) acquired by the individual on the same day and in the same capacity as the relevant shares cease to be treated under section 104(4) as shares of a different class from the relevant shares,

the election shall have effect in respect of the other shares from the time they cease to be so treated.

(4)

In determining for the purposes of section 105A(2) and subsection (2) above whether the individual has made a disposal of any of the relevant shares, sections 122(1) and 128(3) shall be disregarded.

(5)

No election may be made in respect of ordinary shares in a venture capital trust.

For this purpose “ordinary shares” has the meaning given in section 151A(7).

(6)

For the purposes of section 105A, shares in a company shall not be treated as being of the same class unless they are so treated by the practice of a recognised stock exchange, or would be so treated if dealt with on that recognised stock exchange.

(7)

In section 105A(2) to (5) and subsections (2) to (4) above, any reference to the relevant shares or to the approved-scheme shares includes a reference to the securities (if any) directly or indirectly derived from the shares in question by virtue of one or more applications of section 127 (including that section as applied by virtue of any enactment relating to chargeable gains).

(8)

In this section—

“the approved-scheme shares” has the same meaning as in section 105A;

“election” means an election under that section;

“the relevant shares” has the same meaning as in that section; and

“securities” has the meaning given in section 104(3);

and in subsection (4) the reference to section 128(3) includes a reference to that provision as it is applied by virtue of any enactment relating to chargeable gains.”.

“(13)

If the relevant company changes from—

(a)

not recognising a profit or loss on an asset until it is realised, to

(b)

bringing assets into account in each period of account at a fair value,

then, in calculating the amount of any adjustment required under Schedule 22 to the Finance Act 2002 (calculation of adjustment on change of basis), the amount to be taken into account as the cost of the asset in relation to a period of account before the change is the cost of the previous acquisition.”.

“211A Gains of insurance company from venture capital investment partnership

Schedule 7AD to this Act has effect with respect to the gains of an insurance company from a venture capital investment partnership.”.

“(6)

This section is subject to section 748A.”.

“748A

Territorial exclusions from exemption under section 748

(1)

Nothing in section 748 prevents an apportionment under section 747(3) falling to be made as regards an accounting period of a controlled foreign company if the company—

(a)

is a company incorporated in a territory to which this section applies as respects that accounting period; or

(b)

is at any time in that accounting period liable to tax in such a territory by reason of domicile, residence or place of management; or

(c)

at any time in that accounting period carries on business through a branch or agency in such a territory.

(2)

The condition in subsection (1)(c) above is not satisfied as regards an accounting period of a controlled foreign company if the business carried on by the company in that period through branches or agencies in territories to which this section applies, taken as a whole, is only a minimal part of the whole of the business carried on by the company in that period.

(3)

The territories to which this section applies as respects an accounting period of a controlled foreign company are those specified as such in regulations made by the Treasury.

(4)

Regulations under subsection (3) above—

(a)

may make different provision for different cases or with respect to different territories; and

(b)

may contain such incidental, supplemental, consequential or transitional provision as the Treasury may think fit.

(5)

A statutory instrument containing regulations under subsection (3) above shall not be made unless a draft of the instrument has been laid before, and approved by a resolution of, the House of Commons.”.

“(1B)

In determining, for the purposes of any provision of this Chapter except subsection (1)(a) above, whether a company is a person resident in the United Kingdom, section 249 of the Finance Act 1994 (under which a company is treated as non-resident if it is so treated for double taxation relief purposes) shall be disregarded.”.

“501B Assessment, recovery and postponement of supplementary charge

(1)

Subject to subsection (3) below, the provisions of section 501A(1) relating to the charging of a sum as if it were an amount of corporation tax shall be taken as applying, subject to the provisions of the Taxes Acts, and to any necessary modifications, all enactments applying generally to corporation tax, including—

(a)

those relating to returns of information and the supply of accounts, statements and reports;

(b)

those relating to the assessing, collecting and receiving of corporation tax;

(c)

those conferring or regulating a right of appeal; and

(d)

those concerning administration, penalties, interest on unpaid tax and priority of tax in cases of insolvency under the law of any part of the United Kingdom.

(2)

Accordingly (but without prejudice to subsection (1) above) the Management Act shall have effect as if any reference to corporation tax included a reference to a sum chargeable under section 501A(1) as if it were an amount of corporation tax.

(3)

In any regulations made under section 32 of the Finance Act 1998 (as at 17th April 2002, the Corporation Tax (Treatment of Unrelieved Surplus Advance Corporation Tax) Regulations 1999)—

(a)

references to corporation tax do not include a reference to a sum chargeable on a company under section 501A(1) as if it were corporation tax; and

(b)

references to profits charged to corporation tax do not include a reference to adjusted ring fence profits, within the meaning of section 501A(1).

(4)

In this section “the Taxes Acts” has the same meaning as in the Management Act.”.

“(c)

to any sum chargeable on a company under section 501A(1) of the principal Act (supplementary charge in respect of ring fence trades) as if it were an amount of corporation tax chargeable on the company”.

“section 501A(1) of that Act (supplementary charge in respect of ring fence trades), and”.

“1A

Any sum chargeable under section 501A(1) of that Act (supplementary charge in respect of ring fence trades).”.

“(3A)

Any question whether a company is, or is not, a large company as respects an accounting period beginning on or after 17th April 2002 shall, so far as not falling to be determined by reference to the company’s total liability, be determined as it would have been determined apart from section 501A of the Taxes Act (supplementary charge in respect of ring fence trades).”.

“(4C)

In subsection (4B) above—

“company” includes a partnership of which any member is a company; and

“local authority” includes a partnership of which any member is a local authority.”.

(e)

a qualifying interest in land”.

“(9A)

In this section a “qualifying interest in land” means—

(a)

a freehold interest in land, or

(b)

a leasehold interest in land which is a term of years absolute,

where the land in question is in the United Kingdom.

This subsection is subject to subsections (9B) to (9D) below.

(9B)

Where a person makes a disposal to a charity of—

(a)

the whole of his beneficial interest in such freehold or leasehold interest in land as is described in subsection (9A)(a) or (b) above, and

(b)

any easement, servitude, right or privilege so far as benefiting that land,

the disposal falling within paragraph (b) above is to be regarded for the purposes of this section as a disposal by the person of the whole of his beneficial interest in a qualifying interest in land.

(9C)

Where a person who has a freehold or leasehold interest in land in the United Kingdom grants a lease for a term of years absolute (or, in the case of land in Scotland, grants a lease) to a charity of the whole or part of that land, the grant of that lease is to be regarded for the purposes of this section as a disposal by the person of the whole of the beneficial interest in the leasehold interest so granted.

(9D)

For the purposes of subsection (9A) above, an agreement to acquire a freehold interest and an agreement for a lease are not qualifying interests in land.

(9E)

In the application of this section to Scotland—

(a)

references to a freehold interest in land are references to the interest of the owner,

(b)

references to a leasehold interest in land which is a term of years absolute are references to a tenant’s right over or interest in a property subject to a lease, and

(c)

references to an agreement for a lease do not include references to missives of let that constitute an actual lease.”.

“(12)

This section is supplemented by section 587C below.”.

“587C Supplementary provision for gifts of real property

(1)

This section applies for the purposes of section 587B where a qualifying investment is a qualifying interest in land.

(2)

Where two or more persons—

(a)

are jointly beneficially entitled to the qualifying interest in land, or

(b)

are, taken together, beneficially entitled in common to the qualifying interest in land,

section 587B applies only if each of those persons disposes of the whole of his beneficial interest in the qualifying interest in land to the charity.

(3)

Relief under section 587B shall be available to each of the persons referred to in subsection (2) above, but the amount that may be allowed as respects any of them shall be only such share of the relevant amount as they may agree in the case of that person.

(4)

No person may make a claim for a relief under subsection (2) of section 587B unless he has received a certificate given by or on behalf of the charity.

(5)

The certificate must—

(a)

specify the description of the qualifying interest in land which is the subject of the disposal,

(b)

specify the date of the disposal, and

(c)

contain a statement that the charity has acquired the qualifying interest in land.

(6)

If, in the case of a disposal of a qualifying interest in land, a disqualifying event occurs at any time in the relevant period, the person (or each of the persons) who made the disposal to the charity shall be treated as never having been entitled to relief under section 587B in respect of the disposal.

(7)

All such assessments and adjustments of assessments are to be made as are necessary to give effect to subsection (6) above.

(8)

For the purposes of subsection (6) above a disqualifying event occurs if the person (or any one of the persons) who made the disposal or any person connected with him (or any one of them)—

(a)

becomes entitled to an interest or right in relation to all or part of the land to which the disposal relates, or

(b)

becomes party to an arrangement under which he enjoys some right in relation to all or part of that land,

otherwise than for full consideration in money or money’s worth.

(9)

A disqualifying event does not occur, for the purposes of subsection (6) above, if a person becomes entitled to an interest or right as mentioned in subsection (8)(a) above as a result of a disposition of property on death, whether the disposition is effected by will, under the law relating to intestacy or otherwise.

(10)

For the purposes of subsection (6) above the relevant period is the period beginning with the date of the disposal of the qualifying interest in land and ending with—

(a)

in the case of an individual, the fifth anniversary of the 31st January next following the end of the year of assessment in which the disposal was made, and

(b)

in the case of a company, the sixth anniversary of the end of the accounting period in which the disposal was made.

(11)

Section 839 (connected persons) applies for the purposes of this section.

(12)

This section shall be construed as one with section 587B.”.

“(3AA)

If, in the case of any security issued by a company, the amount of new consideration received by the company for the issue of the security exceeds the amount of the principal secured by the security—

(a)

the amount of the principal so secured shall be treated for the purposes of paragraph (d) of subsection (2) above as increased to the amount of the new consideration so received; and

(b)

subsection (3A) above, so far as relating to that paragraph, shall not have effect in relation to the security;

but this subsection is subject to sections 209A and 209B.”.

“209A Section 209(3AA): link to shares of company or associated company

(1)

Subsection (3AA) of section 209 does not apply in relation to a security issued by a company (the “issuing company”) if the security is one which to a significant extent reflects dividends or other distributions in respect of, or fluctuations in the value of, shares in one or more companies each of which is—

(a)

the issuing company; or

(b)

an associated company of the issuing company;

but this subsection is subject to the following provisions of this section.

(2)

Subsection (1) above does not prevent subsection (3AA) of section 209 above from applying in relation to a security if—

(a)

the issuing company is a bank or securities house;

(b)

the security is issued by the issuing company in the ordinary course of its business; and

(c)

the security reflects dividends or other distributions in respect of, or fluctuations in the value of, shares in companies falling within paragraph (a) or (b) of subsection (1) above by reason only that the security reflects fluctuations in a qualifying index.

(3)

In subsection (2)(c) above “qualifying index” means an index whose underlying subject matter includes both—

(a)

shares in one or more companies falling within paragraph (a) or (b) of subsection (1) above, and

(b)

shares in one or more companies falling within neither of those paragraphs,

and which is an index such that the shares falling within paragraph (b) above represent a significant proportion of the market value of the underlying subject matter of the index.

(4)

In this section—

“bank” has the meaning given by section 840A;

“securities house” means any person—

(a)

who is authorised for the purposes of the Financial Services and Markets Act 2000; and

(b)

whose business consists wholly or mainly of dealing in financial instruments as principal;

and in paragraph (b) above “financial instrument” has the meaning given by section 349(5) and (6).

(5)

For the purposes of this section a company is an “associated company” of another at any time if at that time one has control of the other or both are under the control of the same person or persons.

(6)

For the purposes of subsection (5) above, “control”, in relation to a company, means the power of a person to secure—

(a)

by means of the holding of shares or the possession of voting power in or in relation to the company or any other company, or

(b)

by virtue of any powers conferred by the articles of association or other document regulating the company or any other company,

that the affairs of the company are conducted in accordance with his wishes.

(7)

There shall be left out of account for the purposes of subsection (6) above—

(a)

any shares held by a company, and

(b)

any voting power or other powers arising from shares held by a company,

if a profit on a sale of the shares would be treated as a trading receipt of a trade carried on by the company and the shares are not, within the meaning of Chapter 1 of Part 12, assets of an insurance company’s long-term insurance fund (see section 431(2)).

209B Section 209(3AA): hedging arrangements

(1)

Subsection (3AA) of section 209 does not at any time apply in relation to a security issued by a company (the “issuing company”) if at that time, or any earlier time on or after 17th April 2002, there are or have been any hedging arrangements that relate to some or all of the company’s liabilities under the security.

(2)

Subsection (1) above does not prevent subsection (3AA) of section 209 from applying in relation to a security at any time if—

(a)

conditions 1 to 4 below are satisfied in relation to any such hedging arrangements at that time; and

(b)

at all earlier times on or after 17th April 2002 when there have been hedging arrangements that relate to some or all of the company’s liabilities under the security, conditions 1 to 4 below were satisfied in relation to those hedging arrangements.

(3)

Where subsection (3AA) of section 209 at any time ceases to apply in relation to a security by virtue of this section, subsection (2)(d) of that section shall have effect in relation to the security as from that time as it would have had effect if subsection (3AA) had never applied in relation to the security.

(4)

Condition 1 is that the hedging arrangements do not constitute, include, or form part of, any scheme or arrangement the purpose or one of the main purposes of which is the avoidance of tax or stamp duty.

(5)

Condition 2 is that the hedging arrangements are such that, where for the purposes of corporation tax a deduction in respect of the security falls to be made at any time by the issuing company, then at that time, or within a reasonable time before or after it, any amounts intended under the hedging arrangements to offset some or all of that deduction arise—

(a)

to the issuing company; or

(b)

to a company which is a member of the same group of companies as the issuing company.

(6)

Condition 3 is that the whole of every amount arising as mentioned in subsection (5) above is brought into charge to corporation tax—

(a)

by a company falling within paragraph (a) or (b) of that subsection, or

(b)

by two or more companies, taken together, each of which falls within paragraph (a) or (b) of that subsection.

(7)

Condition 4 is that for the purposes of corporation tax any deductions in respect of expenses of establishing or administering the hedging arrangements are reasonable, in proportion to the amounts required to be brought into charge to corporation tax by subsection (6) above.

(8)

For the purposes of this section “hedging arrangements”, in relation to a security, means any scheme or arrangement for the purpose, or for purposes which include the purpose, of securing that an amount of income or gain accrues, or is received or receivable, whether directly or indirectly, which is intended to offset some or all of the amounts which fall to be brought into account, in accordance with generally accepted accounting practice, in respect of amounts accruing or falling to be paid in accordance with the terms of the security.

(9)

Any reference in this section to two companies being members of the same group of companies is a reference to their being members of the same group of companies for the purposes of Chapter 4 of Part 10 of this Act (group relief).”.

““generally accepted accounting practice” has the meaning given by section 836A;”;

““for accounting purposes” means for the purposes of accounts drawn up in accordance with generally accepted accounting practice;”;

““period of account”—

(a)

in relation to a person, means any period for which the person draws up accounts, and

(b)

in relation to a trade, profession, vocation or other business means any period for which accounts of the business are drawn up;”.

““period of account” has the meaning given by section 832(1) of the Taxes Act;”.

“(5)

This paragraph and paragraph 4 below have effect for the purposes of corporation tax notwithstanding anything in section 80(5) of the Finance Act 1996 (matters to be brought into account in the case of loan relationships only under Chapter 2 of Part 4 of that Act).”.