Finance Act 2006

Shares treated as loan relationships: application of rules to non-qualifying shares

14(1)Section 91B of FA 1996 (non-qualifying shares) is amended as follows.

(2)In subsection (1) (conditions for section to apply)—

(a)in the opening words, for “a company if at any time in an accounting period” substitute “the times in a company’s accounting period during which”, and

(b)in the words after paragraph (c), for “at no time in the accounting period does section 91A above apply” substitute “, during those times, section 91A above does not apply”.

(3)In subsection (2) (how Chapter has effect for the accounting period) after “as if” insert “during those times”.

(4)The amendments made by this paragraph have effect in relation to accounting periods ending on or after 22nd March 2006.

(5)But, in relation to an accounting period beginning before 22nd March 2006, amounts are to be brought into account for the purposes of Chapter 2 of Part 4 of FA 1996 as a result of those amendments only if the amounts relate to any time on or after that date.