Finance Act 2003

Discounted securities where companies have a connection U.K.

4 (1) In paragraph 17, for sub-paragraph (8) (reference to person standing in the position of creditor to include person indirectly standing in that position) substitute— U.K.

“(8) Any reference in this paragraph to a company which stands in the position of a creditor as respects a relevant discounted security includes a reference to a company which indirectly stands in that position by reference to a series of loan relationships or money debts which would be loan relationships if a company directly stood in the position of creditor or debtor.”.

(2) The amendment made by this paragraph has effect in relation to relevant periods beginning on or after 9th April 2003.

(3) If, in the case of an issuing company, 9th April 2003 falls in a relevant period beginning before that day—

(a) the amendment made by this paragraph also has effect in relation to a proportionate part of the debits of that company relating to the amount of the discount that is referable to that period, and

(b) that proportion is the proportion which the part of that period—

(i) beginning with 9th April 2003, and

(ii) ending with the end of that period,

bears to the whole of that period.

(4) Expressions used in sub-paragraph (2) or (3) and in paragraph 17 of Schedule 9 to the Finance Act 1996 (c. 8) have the same meaning in that sub-paragraph as in that paragraph.