11(1)Section 97 of FA 1996 (manufactured interest) is amended as follows.U.K.
(2)In subsection (2) (consequences of company having relationship to which the section applies)—
(a)paragraph (b) (which restricts the debits and credits to be brought into account to those relating to the manufactured interest) shall cease to have effect, and
(b)in the closing words, for “paragraphs (a)(ii) and (b)” substitute “ paragraph (a)(ii) ”.
(3)After subsection (2) insert—
“(2A)Where a company—
(a)has a relationship to which this section applies, but
(b)enters into a related transaction in respect of the right to receive manufactured interest,
then, for the purpose of bringing credits into account by virtue of subsection (2) above in respect of that or any other related transaction, the company shall continue to be treated as having a relationship to which this section applies even though the manufactured interest is not payable to the company.”.
(4)Omit subsections (3) and (3A) (which relate to whether debits or credits are trading or non-trading etc and which are unnecessary, in view of the application of sections 82(2) and 103(2) of FA 1996 by virtue of section 97(2) of that Act).
(5)The amendments made by this paragraph have effect in relation to related transactions on or after 16th March 2005.