Finance (No. 3) Act 2010

Amendments of Chapter 5 (intra-group financing income where payer denied deduction)

18 (1) Section 305 (financing income amounts of a company) is amended as follows.

(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 Chapter, be brought into account by the company for the purposes of corporation tax 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.”

(4) In subsection (6), for “or C” (in both places) substitute “, C or D”.

(5) After that subsection insert—

“(7) In this section the following expressions have the same meaning as they have in Part 5 of CTA 2009 (loan relationships)—

• “exchange gain”,

• “impairment loss”, and

• “related transaction”.”