Finance (No. 2) Act 2017

Application of sections 23A to 23H of ITTOIA 2005 in relation to loans etc. outstanding on 5 April 2019

1 (1) A loan or quasi-loan in relation to which sub-paragraph (2) applies is to be treated as a “relevant benefit” for the purposes of sections 23A to 23H of ITTOIA 2005.

(2) This sub-paragraph applies in relation to a loan or a quasi-loan if—

(a) the loan or quasi-loan was made—

(i) on or after 6 April 1999, and

(ii) before 6 April 2017, and

(b) an amount of the loan or quasi-loan is outstanding immediately before the end of 5 April 2019.

(3) Where section 23E of ITTOIA 2005 applies in relation to a relevant benefit which is a loan or quasi-loan in relation to which sub-paragraph (2) applies, section 23E has effect—

(a) as if the “relevant benefit amount” were the amount of the loan or quasi-loan that is outstanding immediately before—

(i) the end of the approved repayment date, if the relevant benefit is an approved fixed term loan on 5 April 2019, or

(ii) the end of 5 April 2019 in any other case,

(b) as if section 23E(1)(a) specified—

(i) the tax year in which the approved repayment date falls, if the relevant benefit is an approved fixed term loan on 5 April 2019, or

(ii) the tax year 2018-2019 in any other case, and

(c) where T ceases to carry on the relevant trade in a tax year before the tax year so specified in section 23E(1)(a), as if section 23E(1)(b) were omitted and as if section 23E(1) provided that the relevant benefit amount is to be treated for income tax purposes as a post-cessation receipt of the trade received in the tax year so specified in section 23E(1)(a).

(4) This paragraph is subject to paragraphs 19 and 20 (accelerated payments).

(5) For the purposes of this paragraph, whether an amount of a loan or quasi-loan is outstanding at a particular time—

(a) is to be determined in accordance with the following provisions of this Schedule, and

(b) does not depend on the loan or quasi-loan subsisting at that time.