Part 6Relationships treated as loan relationships etc
F1Chapter 6AShares accounted for as liabilities
521AIntroduction to Chapter
1
This Chapter contains rules for Part 5 (and the other provisions of the Corporation Tax Acts) to apply in some cases as if at some times in the accounting period of a company (“A”) which holds shares of a certain kind in another company (“B”) the shares were rights under a creditor relationship of A.
2
See, in particular—
a
section 521B (application of Part 5 to some shares as rights under creditor relationship), and
b
section 521C (which describes the shares to which the rules apply).
3
In this Chapter references to the investing company are to A and references to the issuing company are to B.
4
For the purposes of this Chapter, the definition of “share” in section 476(1) only applies so far as it provides that “ share ” does not include a share in a building society.
5
Section 550(3) (repos: ignoring effect on borrower of sale of securities) does not apply for the purposes of this Chapter.
6
See section 116B of TCGA 1992 for the effect for chargeable gains purposes of shares beginning or ceasing to be shares to which section 521C applies.
Pt. 6 Ch. 6A inserted (retrospective and with effect in accordance with Sch. 24 paras. 12, 13-16 of the commencing Act) by Finance Act 2009 (c. 10), Sch. 24 para. 412