Finance Act 2009

Financing income amounts of a company

This section has no associated Explanatory Notes

46(1)References in this Part to a “financing income amount” of a company are (subject to sub-paragraph (6)) to any amount that meets condition A, B or C.

(2)Condition A is that the amount is a credit that—

(a)would, apart from this Part, be brought into account by the company for the purposes of corporation tax,

(b)would be so brought into account in respect of a loan relationship—

(i)under Part 3 of CTA 2009 by virtue of section 297 of that Act (loan relationships for purposes of trade), or

(ii)under Part 5 of that Act (other loan relationships), and

(c)is not an excluded credit.

(3)A credit is “excluded” if it is in respect of—

(a)the reversal of an impairment loss,

(b)an exchange gain, or

(c)a profit from a related transaction.

(4)Condition B is that the amount is an amount that would, apart from this Part, be brought into account by the company for the purposes of corporation tax in respect of the financing income implicit in amounts received under finance leases.

(5)Condition C is that the amount is an amount that would, apart from this Part, be brought into account by the company for the purposes of corporation tax in respect of the financing income receivable on debt factoring, or any similar transaction.

(6)The provisions of Part 7 apply in relation to an amount that is a financing income amount of a company by virtue of meeting condition A, B or C in this paragraph as they apply in relation to an amount that is a financing income amount of a relevant group company by virtue of meeting condition A, B or C in paragraph 55.