F1PART 8AProfits arising from the exploitation of patents etc
CHAPTER 3Relevant IP profits
Total gross income of trade
357CBFinance income
1
For the purposes of this Part “finance income”, in relation to a trade of a company, means—
a
any credits which are treated as receipts of the trade by virtue of—
i
section 297 of CTA 2009 (credits in respect of loan relationships), or
ii
section 573 of CTA 2009 (credits in respect of derivative contracts),
b
any amount which in accordance with generally accepted accounting practice falls to be recognised as arising from a financial asset, and
c
any return, in relation to an amount, which—
i
is produced for the company by an arrangement to which it is party, and
ii
is economically equivalent to interest.
2
In subsection (1)—
“economically equivalent to interest” is to be construed in accordance with section 486B(2) and (3) of CTA 2009, and
“financial asset” means a financial asset as defined for the purposes of generally accepted accounting practice.
3
For the purposes of subsection (1)(c), the amount of a return is the amount which by virtue of the return would, in calculating the company's chargeable profits, be treated under section 486B of CTA 2009 (disguised interest to be regarded as profit from loan relationship) as a profit arising to the company from a loan relationship.
But, in calculating that profit for the purposes of this subsection, sections 486B(7) and 486C to 486E of that Act are to be ignored.
Pt. 8A inserted (with effect in accordance with Sch. 2 paras. 7, 8 of the amending Act) by Finance Act 2012 (c. 14), Sch. 2 para. 1(1)