C11C2C12C9C5C7C1C6C3C4C8Part 5Loan Relationships

Annotations:
Modifications etc. (not altering text)
C11

Pt. 5 applied (with effect in accordance with Sch. 24 paras. 13-16 of the amending Act) by Finance Act 2009 (c. 10), Sch. 24 para. 15(2)(3)

C2

Pt. 5 applied (with modifications) (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), ss. 990(5), 1184(1) (with Sch. 2)

C12

Pt. 5 modified (15.11.2011 for specified purposes, 30.3.2012 for E.W.) by Localism Act 2011 (c. 20), ss., 240(5)(o), Sch. 24 para. 5; S.I. 2012/628, art. 3(b)

C5

Pt. 5 modified (with effect in accordance with s. 148 of the amending Act) by Finance Act 2012 (c. 14), s. 88(1)(2)(7) (with s. 147, Sch. 17)

C1

Pt. 5 modified (with effect in accordance with reg. 1(2)(3) of the amending S.I.) by The Taxation of Regulatory Capital Securities Regulations 2013 (S.I. 2013/3209), regs. 1(1), 11(3)-(6)

C6

Pt. 5 modified by 2010 c. 4, s. 356NC(1)-(4) (as inserted (1.4.2014) by Finance Act 2014 (c. 26), Sch. 16 paras. 4, 6)

C3

Pt. 5 modified by 2010 c. 4, s. 356NB(1)-(4) (as inserted (1.4.2014) by Finance Act 2014 (c. 26), Sch. 16 paras. 4, 6)

C4

Pt. 5 modified by 2007 c. 3, s. 809FZZ(9) (as inserted (with effect in accordance with s. 37(4) of the amending Act) by Finance Act 2016 (c. 24), s. 37(2))

C8

Pt. 5 modified by 2010 c. 4, s. 676AG(1) (as inserted (with effect in accordance with Sch. 4 para. 190 of the amending Act) by Finance (No. 2) Act 2017 (c. 32), Sch. 4 para. 75)

C10C2Chapter 7Group relief claims involving impaired or released consortium debts

Annotations:
Modifications etc. (not altering text)
C10

Pt. 5 Chs. 6-8 modified (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), ss. 601, 1184(1) (with Sch. 2)

364Introduction to Chapter

1

This Chapter applies if—

a

there is (or was) a relevant consortium creditor relationship (see subsection (2)), and

b

either—

i

an impairment loss is or has been brought into account for the purposes of this Part for any group accounting period by the creditor, or

ii

a debit in respect of a release of liability under the relationship is or has been so brought into account.

2

For the purposes of this Chapter a relationship is a relevant consortium creditor relationship if—

a

it is a creditor relationship of—

i

a company (the “member company”), which is a member of a consortium by which a consortium company is owned, or

ii

a company (a “group member”) which is a member of the same group of companies as the member company but is not itself a member of the consortium, and

b

the consortium company or, if that company is a holding company, a consortium company which is a subsidiary of that company is (or was) the debtor (the “debtor consortium company”).

3

The provisions of this Chapter—

a

reduce debits for impairment losses and release debits under relevant consortium creditor relationships where an amount surrendered as group relief by the consortium company is claimed by a member company or group member (see section 365),

b

provide for a corresponding reduction in credits in respect of such relationships where a reduction within paragraph (a) has occurred (see section 367),

c

reduce claims for group relief where debits within paragraph (a) for earlier group accounting periods exceed reductions within paragraph (b) (see section 368), and

d

provide for such claims to be carried forward where they exceed such debits (see section 369).

4

In this Chapter “release debit” means a debit in respect of a release of liability under a relevant consortium creditor relationshipF2, and

“group relief” means—

  1. a

    group relief under Part 5 of CTA 2010 (see section 97(2) of that Act), and

  2. b

    group relief for carried-forward losses under Part 5A of CTA 2010 (see section 188AA(4) of that Act).

5

If F1section 143F3, 144 or 188DH of CTA 2010 (which limit the amount of group relief to be given in certain cases involving a consortium) applies, effect must be given to that section before effect is given to this Chapter.

6

Expressions defined in this section have the same meaning in the other provisions of this Chapter, and sections 370 and 371 also apply for the interpretation of this Chapter.

7

For the meaning of “impairment loss” see section 476(1).