(1)A payment made in respect of tier two securities is not a distribution for the purposes of the Corporation Tax Acts.
(2)Subsection (1) does not apply in the case of any tier two securities if there are arrangements the main purpose, or one of the main purposes, of which is to obtain a tax advantage for any person as a result of the application of that subsection in respect of those securities.
(3)For the purposes of this section—
(a)“tier two securities” means securities (other than shares) issued by a bank or a parent undertaking of a bank that form part of the tier two capital resources of the bank or parent undertaking,
(b)“bank” has the meaning given by section 1120,
(c)“tax advantage” has the meaning given by section 1139,
(d)“parent undertaking” is to be read in accordance with section 420 of FISMA 2000, and
(e)the reference to tier two capital resources is to be read in accordance with the PRA Handbook made by the Prudential Regulation Authority (as that Handbook has effect from time to time).
(4)In relation to any time before 1 April 2013, the reference in subsection (3)(e) to the PRA Handbook is to be read as a reference to the Handbook of Rules and Guidance made by the Financial Services Authority (as that Handbook had effect at the time in question).]
Textual Amendments
F1S. 1032A and cross-heading inserted (retrospective to 26.10.2012) by Finance Act 2013 (c. 29), s. 43(5)(6)
