Finance (No. 2) Act 2023

307 Application of Part 5 of CTA 2010 for the purposes of determining interests

(1) Chapter 6 of Part 5 of CTA 2010 (group relief: equity holders and profits or assets available for distribution) applies for the purposes of determining the interests of persons in companies under the following provisions (each a “relevant provision”)—

(a) section 287(4);

(b) section 290(5);

(c) section 292(1)(b)(ii), (3)(b) and (4)(b);

(d) section 293(7)(b);

(e) section 294(5)(b);

(f) section 296(7)(b).

(2) For those purposes that Part has effect as if—

(a) references to section 151(4)(a) and (b) of that Act were references to the relevant provision,

(b) in section 158 of that Act after subsection (2) there were inserted—

“(2A) But for those purposes a person carrying on a business of banking is not treated as a loan creditor of a company in respect of any loan capital or debt issued or incurred by the company for money lent by the person to the company in the ordinary course of that business.”,

(c) sections 171(1)(b) and (3), 173, 174 and 176 to 178 of that Act were omitted, and

(d) in its application for the purposes of paragraph (a) of section 290(5), any reference to company A were to the person referred to in that paragraph.

(3) That Part is to be read, for the purposes mentioned in subsection (1), with all modifications necessary to ensure that—

(a) it applies to a company which does not have share capital, and to holders of corresponding ordinary holdings in such a company, in a way which corresponds to the way it applies to companies with ordinary share capital and holders of ordinary shares in such companies,

(b) it applies to a company which is an unincorporated association in a way which corresponds to the way it applies to companies which are bodies corporate,

(c) it applies in relation to ownership through an entity (other than a company), or any trust or other arrangement, in a way which corresponds to the way it applies to ownership through a company, and

(d) for the purposes of achieving paragraphs (a) to (c), profits or assets are attributed to holders of corresponding ordinary holdings in unincorporated associations, entities, trusts or other arrangements in a manner which corresponds to the way profits or assets are attributed to holders of ordinary shares in a company which is a body corporate.

(4) In subsection (3) “corresponding ordinary holding” in an unincorporated association, entity, trust or other arrangement means a holding or interest which provides the holder with economic rights corresponding to those provided by a holding of ordinary shares in a body corporate.