PART 1PRELIMINARY PROVISIONS AND INTERPRETATION

Citation, commencement and effect1

1

These Regulations may be cited as the Corporation Tax (Financing Costs and Income) Regulations 2009 and, subject to paragraph (2), shall come into force on 1st January 2010.

2

Circumstance 4 in regulations 13(2) and 28(2) come into force on 1st April 2010.

3

These Regulations have effect in relation to periods of account beginning on or after 1st January 2010.

Introduction and structure of Regulations2

1

These Regulations make provision about the treatment for the purposes of corporation tax of certain financing costs and certain financing income of companies that are members of a group.

2

The structure of these Regulations is as follows—

  • Part 1 makes provision in relation to general and preliminary matters;

  • Part 2 makes provision in relation to the disallowance of deductions;

  • Part 3 makes provision in relation to the exemption of financing income.

Interpretation3

1

For the purposes of these Regulations—

a

“Schedule 15” means Schedule 15 of the Finance Act 2009 (tax treatment of financing costs and income);

b

a company is an “immediate parent” of another company if it directly owns more than 50% of the ordinary share capital of that other company;

c

a company is an “ultimate UK parent” in relation to a group if it—

i

is a member of the group,

ii

is a corporate entity,

iii

is not a subsidiary (whether direct or indirect) of a corporate entity resident in the United Kingdom,

iv

is not a collective investment scheme, and

v

is a company to which Part 3 and Part 4 of Schedule 15 apply.

2

In this regulation, “collective investment scheme” has the meaning given by paragraph 80(2) of Schedule 15.