SCHEDULES

SCHEDULE 1Minor and consequential amendments

Part 1Income and Corporation Taxes Act 1988

62

1

Amend section 353 (relief for payments of interest: general) as follows.

2

In subsection (1)—

a

omit “sections 359 to 368 of this Act and”, and

b

for “sections 359 to 365” substitute “ section 365 ”.

3

For subsection (1A) substitute—

1A

Where a person is entitled for a year of assessment to relief under this section in respect of an amount of interest which is eligible for relief by virtue of section 365, the relief is given as a tax reduction for that tax year.

1AA

The amount of the tax reduction is 23% of the amount of the interest.

1AB

The tax reduction is given effect at Step 6 of the calculation in section 23 of ITA 2007.

4

Omit subsection (1B).

5

In subsection (1E)—

a

omit “under this section”,

b

for “subsection (1B) above” substitute “ section 383 of ITA 2007 (relief for interest payments) ”,

c

for “those subsections” substitute “ those provisions ”, and

d

for the words from “and subsection (1A) or (1B)” to the end substitute “ and subsection (1A) above or section 383 of ITA 2007 shall apply accordingly to the case in which that subsection or section applies ”.

6

Omit subsections (1F) to (1H).