Part 3Income tax, corporation tax and capital gains tax

Chapter 2Corporation tax: general

Thin capitalisation

34Payments of excessive interest etc

(1)

In section 209 of the Taxes Act 1988 (meaning of “distribution”) the following provisions shall cease to have effect—

(a)

in subsection (2), paragraph (da) (interest etc in respect of securities where issuing company is 75% subsidiary of holder etc and the interest represents an amount that would not have been paid but for a special relationship etc); and

(b)

subsections (8A) to (8F) (application of section 808A(2) to (4) for purposes of paragraph (da) of subsection (2)).

F1(2)

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F1(3)

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F2(4)

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