Modifications etc. (not altering text)
C1Pt. 5 applied (with effect in accordance with Sch. 24 paras. 13-16 of the amending Act) by Finance Act 2009 (c. 10), Sch. 24 para. 15(2)(3)
C2Pt. 5 applied (with modifications) (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), ss. 990(5), 1184(1) (with Sch. 2)
C3Pt. 5 modified (15.11.2011 for specified purposes, 30.3.2012 for E.W.) by Localism Act 2011 (c. 20), ss., 240(5)(o), Sch. 24 para. 5; S.I. 2012/628, art. 3(b)
C4Pt. 5 modified (1.4.2012) by Budget Responsibility and National Audit Act 2011 (c. 4), s. 29, Sch. 4 para. 2; S.I. 2011/2576, art. 5
(1)This section applies if—
(a)the answer to any question specified in subsection (2)—
(i)depends on the exercise of an option by a party to a loan relationship (“A”) or A's associate, or
(ii)is otherwise under the control of A or A's associate, and
(b)an amortised cost basis of accounting applies for an accounting period.
(2)The questions are—
(a)whether any amount will become due under the relationship after the period ends,
(b)how much will become due under it after the period ends, and
(c)when after the end of the period an amount will become due under the relationship.
(3)In determining the credits and debits to be brought into account for the accounting period in accordance with an amortised cost basis, the assumption in subsection (4) is to be made.
(4)The assumption is that A or A's associate will exercise the power to determine whether and on what date any amount will become due in the way which appears to be the most advantageous to A.
(5)That way is to be determined—
(a)as at the end of the accounting period, and
(b)ignoring taxation.