SCHEDULES

SCHEDULE 1Minor and consequential amendments

Part 2Other enactments

Finance (No. 2) Act 2005 (c. 22)

668

The Finance (No. 2) Act 2005 is amended as follows.

669

In section 18 (section 17(3): specific powers) for subsection (2)(c) substitute—

“(c)

modify the meaning of “relevant holding” for the purposes of—

(i)

sections 490 and 492 of the Corporation Tax Act 2009 (loan relationships), and

(ii)

section 587 of that Act (derivative contracts).”

670

(1)

Amend section 26 (receipts cases) as follows.

(2)

In subsection (7) for the words from “person who” to the end substitute“person who—

(a)

is charged to corporation tax under Part 3 of CTA 2009 (trading income) in respect of distributions of companies that are received in the course of a trade not consisting of insurance business, or

(b)

would be so charged if resident in the United Kingdom.”

(3)

In subsection (10)—

(a)

for “Chapter 2 of Part 4 of FA 1996” substitute “ Part 5 of CTA 2009 (loan relationships) ”, and

(b)

for the words from “section 91A” to the end substitute “ section 523 of that Act (application of that Part of that Act to certain shares as rights under creditor relationship) ”.

671

In section 27(2) (rule as to qualifying payment) for the words from “an amount” to the end substitute “ a receipt of the company which is chargeable for that period under the charge to corporation tax on income ”.

672

In section 71 (interpretation) after the definition of “CAA 2001” insert—

“CTA 2009” means the Corporation Tax Act 2009;”.

673

In Schedule 6 (accounting practice and related matters)—

(a)

omit paragraph 7 (loan relationships with embedded derivatives), and

(b)

omit paragraph 9 (exchange gains and losses).

674

In Schedule 7 (avoidance involving financial arrangements) in paragraph 14—

(a)

in sub-paragraph (4)(b) after “1996” insert “ or Part 5 of CTA 2009 ”, and

(b)

in sub-paragraph (5) after “1996” insert “ and Part 5 of CTA 2009 ”.