SCHEDULES

SCHEDULE 1Minor and consequential amendments

Part 2Other enactments

Finance Act 1996 (c. 8)

371

The Finance Act 1996 is amended as follows.

372

In section 88A(1) (loan relationships: accounting method where rate of interest is reset) for “of Chapter 1 of Part 17” substitute “ given by section 840ZA ”.

373

In section 91D(11) (loan relationships: condition 2 for section 91B(6)(b)) for “section 709(1)” substitute “ section 840ZA ”.

374

1

Amend section 97 (manufactured interest) as follows.

2

For subsection (4) substitute—

4

See sections 736B(2) and 737A(5) of the Taxes Act 1988 for cases in which there is deemed to be a payment of an amount representative of interest for the purposes of this section.

3

In subsection (4A) for “subsection (4) above” substitute “ subsection (2) of that section ”.

375

1

Amend section 103 (interpretation of Chapter 2 of Part 4: loan relationships) as follows.

2

In subsection (1), in the definition of “retail prices index”, for “section 833(2) of the Taxes Act 1988” substitute “ section 989 of the Income Tax Act 2007 ”.

3

In subsection (3B) for “section 709(1)” substitute “ section 840ZA ”.

376

In paragraph 13 of Schedule 9 (loan relationships for unallowable purposes) for sub-paragraph (6) substitute—

6

In this paragraph “tax advantage” has the meaning given by section 840ZA of the Taxes Act 1988.