PART 1Income tax, corporation tax and capital gains tax

CHAPTER 3Corporation tax: general

Miscellaneous

32Group relief: meaning of “normal commercial loan”

(1)

CTA 2010 is amended as follows.

(2)

In section 162(2)(c) (meaning of “normal commercial loan”), after “securities in” insert “ a quoted unconnected company (see section 164(2A)) or in ”.

(3)

In section 164 (sections 160 and 162: supplementary), in subsection (2)(c), after “securities in” insert “ a quoted unconnected company (see subsection (2A)) or in ”.

(4)

After subsection (2) of that section insert—

“(2A)

For the purposes of this section and section 162 a company is a quoted unconnected company if (and only if)—

(a)

its ordinary shares are listed on a recognised stock exchange, and

(b)

it is not connected with the relevant company.”

(5)

In subsection (4) of that section—

(a)

for “If the candidate company's” substitute “ In the case of a company whose ”, and

(b)

for “subsection (3)(c) is” substitute “ subsections (2A)(a) and (3)(c) are ”.

(6)

In subsection (5) of that section, for “subsections (3) and (4)” substitute “ this section ”.

(7)

The amendments made by this section have effect in relation to loans made on or after 21 March 2012.