Part 3Income tax, corporation tax and capital gains tax

Chapter 2Corporation tax: general

Thin capitalisation

34Payments of excessive interest etc

1

In section 209 of the Taxes Act 1988 (meaning of “distribution”) the following provisions shall cease to have effect—

a

in subsection (2), paragraph (da) (interest etc in respect of securities where issuing company is 75% subsidiary of holder etc and the interest represents an amount that would not have been paid but for a special relationship etc); and

b

subsections (8A) to (8F) (application of section 808A(2) to (4) for purposes of paragraph (da) of subsection (2)).

F22

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F23

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F14

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F335Elimination of double counting etc

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F336Balancing payments and elections to pay tax instead

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