SCHEDULES

SCHEDULE 25Loan relationships

Part 2Amendments of other enactments

The Taxes Act 1988

55Foreign tax on items giving rise to a non-trading credit

1

Section 797A is amended as follows.

2

In subsection (5) (which specifies certain amounts under section 83 of the Finance Act 1996 (c. 8) which are to be aggregated for the purposes of subsection (4))—

a

in paragraph (a)—

i

for “(2)(b), (c) or (d)” substitute “ (2)(c) ”; and

ii

for the words from “(group relief” to “deficits)” substitute “ (deficit carried back and set against profits) ”;

b

after paragraph (a) insert—

aa

so much of any non-trading deficit for that period as is surrendered as group relief by virtue of section 403 of the Taxes Act 1988; and

and

c

in paragraph (b), for “(3)” substitute “ (3A) ”.

3

In subsection (6), for “in pursuance of a claim under section 83(2)(d)” substitute “ under section 83(3A) ”.