SCHEDULES

SCHEDULE 1Minor and consequential amendments

Part 2Other enactments

Finance Act 1996 (c. 8)

444

1

Amend Schedule 15 (loan relationships: savings and transitional provisions) as follows.

2

Omit—

a

paragraph 2 (loan relationships terminated before 1st April 1996),

b

paragraph 3 (basic rules for transitional accounting periods),

c

paragraph 3A (adjustment of opening value where new accounting basis adopted as from an accounting period beginning on 1st April 1996), and

d

paragraph 4 (application of accruals basis to pre-commencement relationships).

3

In paragraph 5—

a

in sub-paragraph (5) for “this Chapter is” substitute “ this Chapter (as it had effect immediately before 1st April 2009) was ”,

b

in sub-paragraph (6)(b)—

i

for “which is” substitute “ which was ”, and

ii

after “this Chapter” insert “ (as it had effect immediately before 1st April 2009) ”, and

c

in sub-paragraph (7)—

i

for “taken to be” substitute “ taken to have been ”,

ii

for “is treated” substitute “ was treated ”, and

iii

after “paragraph 4 above” insert “ (as it had effect immediately before 1st April 2009) ”.

4

In paragraph 6—

a

in sub-paragraph (3) for “this Chapter” substitute “ Part 5 of the Corporation Tax Act 2009 ”,

b

for sub-paragraphs (4) to (7) substitute—

4

Sub-paragraphs (1) to (3) above do not apply if the company duly made an election for the purposes of this sub-paragraph as it had effect on 30th September 1996.

c

in sub-paragraph (8)—

i

for “section 82(2) of this Act” substitute “ section 297 of the Corporation Tax Act 2009 ”, and

ii

at the end insert “ under Part 5 of that Act ”.

5

In paragraph 9—

a

in sub-paragraph (1) after “this Chapter” insert “ or Part 5 of the Corporation Tax Act 2009 ”, and

b

in sub-paragraph (2)—

i

after “this Chapter”, in the first place where it occurs, insert “ or that Part ”, and

ii

after “this Chapter”, in the second place where it occurs, insert “ or, as the case may be, that Part ”.

6

Omit paragraph 10 (adjustments of opening value for mark to market accounting in the case of chargeable assets).

7

In paragraph 11 (other adjustments in the case of chargeable assets etc)—

a

in sub-paragraphs (1) and (3)(a) for “this Chapter” substitute “ Part 5 of the Corporation Tax Act 2009 ”,

b

in sub-paragraph (6) at the end insert “ under Part 5 of the Corporation Tax Act 2009 ”, and

c

in sub-paragraph (8) after “this Chapter” insert “ and Part 5 of the Corporation Tax Act 2009 ”.

8

In paragraph 11A(2) (reduction of paragraph 11 credit where section 251(4) of 1992 Act prevents paragraph 8 loss) for “this Chapter” substitute “ Part 5 of the Corporation Tax Act 2009 ”.

9

In paragraph 12 (notional closing values of relevant assets)—

a

in sub-paragraph (2) for “makes” substitute “ made ”, and

b

in sub-paragraph (3)—

i

for “is made” substitute “ was made ”, and

ii

after “this Chapter” insert “ and Part 5 of the Corporation Tax Act 2009 ”.

10

Omit—

a

paragraph 13 (further transitional rules where interest under loan relationships),

b

paragraph 14 (transitional in respect of incidental expenses already allowed), and

c

paragraph 15 (holdings of unit trusts etc).

11

In paragraph 16 (bad debt relieved before commencement of FA 1996)—

a

in sub-paragraph (2)—

i

after “this Chapter”, in the first place where it occurs, insert “ or Part 5 of the Corporation Tax Act 2009 ”, and

ii

after “this Chapter”, in the second place where it occurs, insert “ or that Part ”,

b

in sub-paragraph (3)—

i

after “this Chapter”, in the first place where it occurs, insert “ and Part 5 of the Corporation Tax Act 2009 ”, and

ii

after “this Chapter”, in the second place where it occurs, insert “ and that Part ”, and

c

in sub-paragraph (4) for “falls” substitute “ fell ”.

12

In paragraph 17 (transitional for overseas sovereign debt etc)—

a

in sub-paragraph (1) after “this Chapter” insert “ and Part 5 of the Corporation Tax Act 2009 ”, and

b

in sub-paragraph (3)—

i

after “this Chapter”, in the first place where it occurs, insert “ and Part 5 of the Corporation Tax Act 2009 ”, and

ii

after “this Chapter”, in the second place where it occurs, insert “ and that Part ”.

13

Omit paragraph 18 (transitional for accrued income scheme).

14

In paragraph 19 (deep discount securities)—

a

omit sub-paragraphs (1) and (2),

b

in sub-paragraphs (3A), (4), (5), (6), (7) and (8) for “this Chapter” substitute “ Part 5 of the Corporation Tax Act 2009 ”,

c

omit sub-paragraph (10), and

d

in sub-paragraph (11)(b) for “this Chapter is” substitute “ this Chapter was ”.

15

In paragraph 20 (deep gain securities)—

a

omit sub-paragraph (1),

b

in sub-paragraphs (2A) and (3) for “this Chapter” substitute “ Part 5 of the Corporation Tax Act 2009 ”, and

c

in sub-paragraph (5) for “this Chapter is” substitute “ this Chapter (as it had effect immediately before 1st April 2009) was ”.

16

In paragraph 21 (convertible securities)—

a

omit sub-paragraph (1), and

b

in sub-paragraphs (2) and (4) for “this Chapter” substitute “ Part 5 of the Corporation Tax Act 2009 ”.