371U.K.The Finance Act 1996 is amended as follows.
372U.K.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 ”.
373U.K.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.U.K.
(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.U.K.
(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 ”.
376U.K.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.”