Finance Act 2003

Discounted securities of close companies E+W+S+N.I.

5 (1) Paragraph 18 is amended as follows. E+W+S+N.I.

(2) In sub-paragraph (2C) (reference to person standing in the position of creditor to include person indirectly standing in that position) for the words from “includes a reference” to the end of that sub-paragraph substitute “ includes a reference to a person who indirectly stands in that position by reference to a series of loan relationships or money debts which would be loan relationships if a company directly stood in the position of creditor or debtor ”.

(3) After sub-paragraph (3B) (meaning of “control”) insert—

“(3C) A person who is a participator in a company which controls another company shall be treated for the purposes of this paragraph as also being a participator in that other company.”.

(4) The amendments made by this paragraph have effect in relation to relevant periods beginning on or after 9th April 2003.

(5) If, in the case of an issuing company, 9th April 2003 falls in a relevant period beginning before that day—

(a) the amendments made by this paragraph also have effect in relation to a proportionate part of the debits of that company relating to the amount of the discount that is referable to that period, and

(b) that proportion is the proportion which the part of that period—

(i) beginning with 9th April 2003, and

(ii) ending with the end of that period,

bears to the whole of that period.

(6) Expressions used in sub-paragraph (4) or (5) and in paragraph 18 of Schedule 9 to the Finance Act 1996 (c. 8) have the same meaning in that sub-paragraph as in that paragraph.