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Textual Amendments
F1Pt. 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
(1)This section applies in relation to the times in a company's accounting period when—
(a)the company holds a share in another company, and
(b)section 521C (shares accounted for as liabilities) applies to the share.
(2)Part 5 (and the other provisions of the Corporation Tax Acts) apply as if at those times—
(a)the share were rights under a creditor relationship of the investing company, and
(b)any distribution in respect of the share were not a distribution (and accordingly is within Part 5).
(3)Where Part 5 applies in relation to the investing company in accordance with subsection (2) it so applies as if the issuing company stood in the position of debtor as respects the debt in question.
(4)No debits are to be brought into account by the investing company as respects the share but this does not affect debits to be brought into account in respect of exchange gains or losses.
(5) Subsection (2)(b) does not affect the operation of Part 1 of Schedule 25 of ICTA (controlled foreign companies: acceptable distribution policy) (including as it continues to have effect in accordance with paragraph 8(1) of Schedule 16 to FA 2009).
(6)In this Chapter references to “the share” are to the share mentioned in subsection (1).]