SCHEDULES
SCHEDULE 5Avoidance involving financial arrangements
Structured finance arrangements
7
1
The amendments made by paragraphs 3 to 5 and 6(2) and (3) have effect in relation to any arrangements whenever made.
2
But, in relation to arrangements made before 6th March 2007, amounts are as a result of any of those amendments—
a
to be charged to tax, or
b
to be brought into account in calculating any income for tax purposes or deducted from any income for tax purposes,
only if the amounts arise on or after that date.
3
In any case where, in relation to arrangements made before that date, a person is treated as a result of any of those amendments as being a party to any loan relationship—
a
a period of account is to be treated for the purposes of Chapter 2 of Part 4 of FA 1996 as beginning on that date, and
b
the loan relationship is to be treated for those purposes as being entered into by the person for a consideration equal to the notional carrying value of the liability representing the relationship.
4
For this purpose the notional carrying value is the amount that would have been the carrying value of the liability in the accounts of the person if a period of account had ended immediately before that date.
5
“Carrying value” has the same meaning here as it has for the purposes of paragraph 19A of Schedule 19 to FA 1996.
6
The amendment made by paragraph 6(4) comes into force on the day on which this Act is passed.