SCHEDULES

SCHEDULE 5Financing costs and income of group companies

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

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(1)

Section 314 (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 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.”