C1C2Part 2Double taxation relief
Pt. 2 applied by 2010 c. 4, s. 269DL(6) (as inserted (with effect in accordance with Sch. 3 Pt. 3 of the amending Act) by Finance (No. 2) Act 2015 (c. 33), Sch. 3 para. 1)
CHAPTER 3Miscellaneous provisions
When foreign tax disregarded in applying Part for corporation tax purposes
109Repo cases in which no disregard under section 108
1
Tax attributable to interest accruing to a company under a loan relationship is within this section if—
a
at the time when the interest accrues, the company has ceased to be a party to the relationship by reason of having made the initial sale under or in accordance with any debtor repo relating to the relationship, and
b
that time is in the period for which the repo has effect.
2
In this section—
“debtor repo” has the meaning given by the repo-definition section,
“the initial sale”, in relation to a debtor repo, means the sale mentioned in condition C in the repo-definition section, and
“the repo-definition section” means section 548 of CTA 2009.
3
In this section, a reference to the period for which a debtor repo has effect is to the period from the making of the initial sale until the earlier of—
a
the time when the subsequent purchase mentioned in condition D in the repo-definition section takes place, and
b
the time when it becomes apparent that that subsequent purchase will not take place.
Pt. 2 modified by 1988 c. 1, Sch. 19ABA paras. 26-28 (as inserted (with effect in accordance with s. 381(1) of the amending Act) by Taxation (International and Other Provisions) Act 2010 (c. 8), s. 381(1), Sch. 8 para. 34(3) (with Sch. 9 paras. 1-9, 22))