SCHEDULES
SCHEDULE 25Loan relationships
Part 1Amendments of the Finance Act 1996
33Discounted securities where companies have a connection
1
Paragraph 17 of Schedule 9 is amended as follows.
2
In sub-paragraph (1) (accounting periods to which the paragraph applies) for paragraph (b) substitute—
b
at any time in that period another company stands in the position of a creditor as respects that security;
3
In sub-paragraph (5) (meaning of “connection” between companies) in paragraph (a)(one of the companies has had control of the other in the accounting period or the preceding two years)—
a
omit “, or in the period of two years before the beginning of that period,”; and
b
after “control of” insert “
, or a major interest in,
”
.
4
In paragraph (b) of that sub-paragraph (both companies under control of same person in that period or those two years) omit “, or in those two years,”.
5
For sub-paragraph (8) (which defines what it is for the benefit of a security to be available to a company) substitute—
8
Any reference in this paragraph to a person who stands in the position of a creditor as respects a relevant discounted security includes a reference to a person who indirectly stands in that position by reference to a series of relevant discounted securities.
8A
Where this paragraph applies by virtue of sub-paragraph (8) above, the reference to the corresponding creditor relationship in sub-paragraph (1)(d) above is a reference to the creditor relationship of the company which indirectly stands in the position of a creditor as respects the relevant discounted security.
6
For sub-paragraph (9) (meaning of “control”) substitute—
9
For the purposes of this paragraph “control”, in relation to a company, has the same meaning as in section 87 of this Act (see section 87A).
10
Paragraph 20 below (major interests) applies for the purposes of this paragraph.