SCHEDULES

SCHEDULE 25 U.K. Loan relationships

Part 1 U.K. Amendments of the Finance Act 1996

Life assurance policies and capital redemption policies U.K.

21 After paragraph 1 of Schedule 9 insert—

“Life assurance policies and capital redemption policies

1A (1) The credits and debits to be brought into account for the purposes of this Chapter shall not include any credits or debits relating to—

(a) a policy of life assurance; or

(b) a capital redemption policy, within the meaning of Chapter 2 of Part 13 of the Taxes Act 1988.

(2) Nothing in section 80(5) of this Act prevents an amount which, by virtue of sub-paragraph (1) above, is not brought into account for the purposes of this Chapter from being brought into account for the purposes of corporation tax apart from this Chapter.”.