SCHEDULES

SCHEDULE 5Tax treatment of financing costs and income

12(1)Section 329 (the tested expense amount) is amended as follows.

(2)In subsection (3), for “arises as a result of a transaction that takes place” substitute “accrues”.

(3)After subsection (5) insert—

(6)But subsection (5) does not apply if an election under section 331ZA has effect for the period of account.