Finance (No. 3) Act 2010

Amendments of Chapter 7 (“financing expense amount” and “financing income amount”) U.K.

19 (1) Section 314 (financing income amounts of a company) is amended as follows. U.K.

(2) In subsection (1), for “or C” substitute “ , C or D ”.

(3) After subsection (5) insert—

“(5A) Condition D is that the amount is an amount that would, apart from this Part, be brought into account for the purposes of corporation tax in a relevant accounting period of the company in respect of income that—

(a) is receivable from another company, and

(b) is in consideration of the provision of a guarantee of any borrowing of that other company.”

20 U.K. In section 315 (interpretation of sections 313 and 314), omit “ “impairment”,”.

21 (1) Section 316 (group treasury companies) is amended as follows. U.K.

(2) In subsection (1)(b), for “or C” substitute “ , C or D ”.

(3) For subsection (8) substitute—

“(8) Condition 3 is that at least 90% of the relevant income of the company for the relevant period is group treasury revenue.”

22 U.K. After section 318 (companies engaged in oil extraction activities) insert—

“318A Industrial and provident societies

(1) This section applies if, apart from this section, an amount (“the relevant amount”) is—

(a) a financing expense amount of a company because of meeting condition A in section 313, or

(b) a financing income amount of a company because of meeting condition A in section 314.

(2) The relevant amount is treated as not being a financing expense amount or a financing income amount of the company if it is such an amount only because of section 499 of CTA 2009 (industrial and provident society payments treated as interest under loan relationship).”

23 U.K. In section 321 (short-term loan relationships)—

(a) in subsection (4), omit “other”, and

(b) omit subsection (7).

24 (1) Section 327 (educational and public bodies) is amended as follows. U.K.

(2) In subsection (2), omit the “or” at the end of paragraph (c) and after that paragraph insert—

“(ca) a relevant public body, or”.

(3) In subsection (4), omit the “and” after the definition of “designated educational establishment” and after the definition of “health service body” insert “, and

relevant public body” means a body that—

(a) is not within subsection (2)(a) to (c) and is not a government department,

(b) acts under any enactment for public purposes and not for its own profit, and

(c) is not within the charge to corporation tax.”

(4) After that subsection insert—

“(5) In this section “enactment” includes—

(a) an enactment contained in subordinate legislation (within the meaning of the Interpretation Act 1978), and

(b) an enactment contained in, or in an instrument made under—

(i) an Act of the Scottish Parliament,

(ii) Northern Ireland legislation, or

(iii) a Measure or Act of the National Assembly for Wales.”