Background
26.This section aims to close a tax avoidance scheme in the area of loan relationships and derivatives.
27.The scheme targeted by the section involves schemes which aim to defeat the group mismatch legislation in part 21B of CTA 2010. That legislation prevents any tax advantage arising as a result of asymmetries arising between different companies in a group. An asymmetry may involve, for example, different members of a group of companies bringing different amounts into account in respect of the same loan or derivative. The new section will similarly prevent tax advantages from arising from asymmetries in other circumstances, not necessarily involving a group of companies, for example where a company brings a loan into account in one way, and a partnership of which the company is a member brings the loan into account differently.
