SCHEDULES

SCHEDULE 25Loan relationships

Part 2Amendments of other enactments

The Taxes Act 1988

49European Economic Interest Groupings

1

Section 510A is amended as follows.

2

In paragraph (b) of subsection (3) (charging tax in respect of gains) for “gains” substitute “chargeable gains”.

3

After that paragraph add

;but paragraph (a) above is subject to subsection (6A) below.

4

After subsection (6) (trade or profession carried on by grouping treated for tax on income and gains as carried on by a partnership) insert—

6A

Chapter 2 of Part 4 of the Finance Act 1996 (loan relationships) shall have effect in relation to a grouping as it has effect in relation to a partnership (see in particular section 87A of, and paragraphs 19 and 20 of Schedule 9 to, that Act).