Finance Act 2009

Amounts not fully recognised for accounting purposes

2 (1) Section 311 of CTA 2009 (loan relationships: amounts not fully recognised for accounting purposes) is amended as follows.

(2) In subsection (2), for paragraphs (b) and (c) substitute—

“(b) condition A, B or C is met, and

(c) an amount is not fully recognised for the period in respect of the creditor relationship as a result of the application of generally accepted accounting practice in relation to the creditor relationship and the debtor relationship, contribution or securities referred to in the condition that is met.”

(3) In subsection (3)(b), after “to the” insert “creditor relationship and the debtor”.

(4) In paragraph (b) of subsection (4), after “to the” insert “creditor relationship and the relevant capital”.

(5) After that subsection insert—

“(4A) Condition C is that—

(a) the company has issued securities that form part of its capital for the period, and

(b) an amount is not fully recognised for the period in respect of the securities as a result of the application of generally accepted accounting practice in relation to the creditor relationship and the securities.”

(6) In subsection (6)—

(a) for “or a relevant capital contribution to it” substitute “, a contribution to it or securities issued by it”, and

(b) for “or contribution” (in both places) substitute “, contribution or securities”.

(7) In section 317(5) of CTA 2009 (carrying value), before paragraph (a) insert—

“(za) sections 311 and 312 (amounts not fully recognised for accounting purposes),”.

(8) The amendments made by this paragraph have effect in relation to periods of account beginning on or after 22 April 2009.

(9) But for the purposes of sub-paragraph (8) a period of account beginning before, and ending on or after, 22 April 2009 is to be treated as if so much of the period as falls before that date, and so much of the period as falls on or after that date, were separate periods of account.