SCHEDULES

SCHEDULE 15Tax treatment of financing costs and income

Part 11Consequential amendments and commencement

99Transitional provision

1

An amount that would, apart from this paragraph, meet condition A, B or C in paragraph 54 (definition of “financing expense amount”) does not meet that condition if it is a debit that, but for a relevant enactment, would be brought into account for the purposes of corporation tax in an accounting period beginning before 1 January 2010.

2

For this purpose the following are “relevant enactments”—

a

section 373 of CTA 2009 (late interest treated as not accruing until paid in some cases),

b

section 407 of that Act (postponement until redemption of debits for connected companies' deeply discounted securities),

c

section 409 of that Act (postponement until redemption of debits for close companies' deeply discounted securities), and

d

regulation 3A of the Loan Relationships and Derivative Contracts (Change of Accounting Practice) Regulations 2004 (S.I. 2004/3271) (prescribed debits and credits brought into account over prescribed period).

3

An amount that would, apart from this paragraph, meet condition A, B or C in paragraph 55 (definition of “financing income amount”) does not meet that condition if it is a credit that, but for the regulation mentioned in sub-paragraph (2)(d) of this paragraph, would be brought into account for the purposes of corporation tax in an accounting period beginning before 1 January 2010.