SCHEDULES

SCHEDULE 8Loan relationships: miscellaneous amendments

Late interest: close companies where limited partnership is collective investment scheme etc

2

1

Paragraph 2 (late interest) is amended as follows.

F12

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3

In sub-paragraph (6) (definitions) insert the following definitions at the appropriate place—

  • “CIS-based close company” means a company that would not be a close company apart from the attribution, under section 416(6) of the Taxes Act 1988 by virtue of section 417(3)(a) of that Act, of the rights and powers of one or more partners in a CIS limited partnership to another of the partners;

“CIS limited partnership” means a limited partnership—

a

which is a collective investment scheme, or

b

which would be a collective investment scheme if it were not a body corporate;

“collective investment scheme” means a collective investment scheme within the meaning of section 235 of the Financial Services and Markets Act 2000;

4

The amendments made by this paragraph have effect for accounting periods ending on or after 10th December 2003.