Source: http://www.legislation.gov.uk/ukpga/1996/8/section/97
Timestamp: 2013-05-25 23:39:39
Document Index: 10021494

Matched Legal Cases: ['art. 3', 'art. 3', 'art. 3', 'art. 2', 'art. 2', 'art. 2', 'art. 2', 'art. 2', 'art. 2', 'art. 2', 'art. 2', 'art. 2', 'art. 2', 'art. 2', 'art. 2', 'art. 2', 'art. 2', 'art. 2', 'art. 2', 'art. 2', 'art. 2', 'art. 2', 'art. 2', 'art. 2', 'art. 2', 'art. 1', 'art. 2', 'art. 2', 'art. 3', 'art. 2', 'art. 2', 'art. 2', 'art. 2']

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Chapter II Special casesSection 97Table of ContentsContentMore ResourcesPrevious: ProvisionNext: ProvisionPlain ViewPrint Options
Changes to legislation:There are outstanding changes not yet made by the legislation.gov.uk editorial team to Finance Act 1996. Any changes that have already been made by the team appear in the content and are referenced with annotations.Changes to LegislationRevised legislation carried on this site may not be fully up to date. Changes and effects are recorded by our editorial team in lists which can be found in the ‘Changes to Legislation’ area. Where those effects have yet to be applied to the text of the legislation by the editorial team they are also listed alongside the legislation in the affected provisions. Use the ‘more’ link to open the changes and effects relevant to the provision you are viewing.Changes and effects yet to be applied to :Changes and effectsThis section lists the changes and effects yet to be applied to the specific provision you are viewing.s. 97 applied by SI 2006/964 reg. 69Z24B(5) (as inserted) by S.I. 2008/3159 reg. 27s. 97 repealed by 2009 c. 4 Sch. 1 para. 432 Sch. 3 Pt. 1s. 97(2) word repealed by 2005 c. 22 Sch. 11 Pt. 2(8)s. 97(2) words inserted by 2009 c. 10 Sch. 30 para. 5(2)s. 97(2) words substituted by 2005 c. 22 Sch. 7 para. 11(2)(b)s. 97(2)(b) repealed by 2005 c. 22 Sch. 7 para. 11(2)(a) Sch. 11 Pt. 2(8)s. 97(2A) inserted by 2005 c. 22 Sch. 7 para. 11(3)s. 97(3)(3A) repealed by 2005 c. 22 Sch. 7 para. 11(4) Sch. 11 Pt. 2(8)s. 97(4) substituted by 2007 c. 3 Sch. 1 para. 374(2)s. 97(4) words substituted by 2007 c. 11 Sch. 14 para. 16(2)s. 97(4A) words substituted by 2007 c. 3 Sch. 1 para. 374(3)s. 97(4B) inserted by 2007 c. 11 Sch. 14 para. 16(3)Changes and effects yet to be applied to the whole Act, associated Parts and Chapters:Changes and effectsThis section lists the changes and effects yet to be applied to the whole Act, associated Parts and Chapters where applicable. This includes any insertions of whole new Parts, Chapters or provisions yet to be inserted into this Act. These effects are included in this view as they may be (but won’t necessarily be) relevant to the specific provision that you are viewing.Act modified by S.I. 2006/964 reg. 95 (This SI is amended by SI 2009/2036 reg. 30)Act modified by S.I. 2009/317 art. 3 Sch.Blanket amendment words substituted by S.I. 2011/1043 art. 3 4Blanket amendment words substituted by S.I. 2011/1043 art. 3 6Whole provisions yet to be inserted into this Act (including any effects on those provisions):s. 43l(l) and word inserted by S.I. 2006/1054 Sch. 1 para. 2(b)s. 54A-54G inserted by S.I. 2009/56 Sch. 1 para. 235s. 65A inserted by 2009 c. 10 Sch. 60 para. 2s. 85A repealed by 2009 c. 4 Sch. 1 para. 409 Sch. 3 Pt. 1s. 85A 85B substituted for s. 85 86 by 2004 c. 12 Sch. 10 para. 3s. 85A(1) words inserted by 2006 c. 25 Sch. 6 para. 11(2)s. 85B repealed by 2009 c. 4 Sch. 1 para. 410 Sch. 3 Pt. 1s. 85B(1) modified by S.I. 2005/3422 reg. 9(5)s. 85B(1)(a) words inserted by 2005 c. 7 Sch. 4 para. 26(2)s. 85B(2) substituted by 2005 c. 7 Sch. 4 para. 26(3)s. 85B(3)(a) words inserted by 2005 c. 7 Sch. 4 para. 26(4)(a)s. 85B(3)(b) words substituted by 2005 c. 7 Sch. 4 para. 26(4)(b)s. 85B(4) words inserted by 2005 c. 7 Sch. 4 para. 26(5)s. 85B(6) repealed by 2005 c. 22 Sch. 11 Pt. 2(6)s. 85C inserted by 2006 c. 25 Sch. 6 para. 12(1)s. 85C repealed by 2009 c. 4 Sch. 1 para. 411 Sch. 3 Pt. 1s. 85C(1)(c) words substituted by 2007 c. 11 Sch. 5 para. 11(2)(a)s. 85C(1)(d)(e) words substituted by 2007 c. 11 Sch. 5 para. 11(2)(b)s. 85C(2) words substituted by 2007 c. 11 Sch. 5 para. 11(3)(a)s. 85C(2) words substituted by 2007 c. 11 Sch. 5 para. 11(3)(b)s. 90A inserted by 2004 c. 12 Sch. 10 para. 8s. 90A repealed by 2009 c. 4 Sch. 1 para. 416 Sch. 3 Pt. 1s. 91A and cross-heading inserted by 2005 c. 22 Sch. 7 para. 10(1)(2)s. 91A repealed by 2009 c. 4 Sch. 1 para. 417 Sch. 3 Pt. 1s. 91A(1) words substituted by 2006 c. 25 Sch. 6 para. 13(2)s. 91A(2) words inserted by 2006 c. 25 Sch. 6 para. 13(3)s. 91A(2)(b) words omitted by 2008 c. 9 Sch. 22 para. 6(1)(a)s. 91A(2A) inserted by 2008 c. 9 Sch. 22 para. 7(2)s. 91A(3) words omitted by 2008 c. 9 Sch. 22 para. 7(3)s. 91A(4) words omitted by 2008 c. 9 Sch. 22 para. 7(3)s. 91A(4) words substituted by 2007 c. 11 Sch. 5 para. 12(2)s. 91A(5)(a) words inserted by 2006 c. 25 Sch. 6 para. 13(4)(a)s. 91A(5)(b) words inserted by 2006 c. 25 Sch. 6 para. 13(4)(b)s. 91A(5A) inserted by 2006 c. 25 Sch. 6 para. 13(5)s. 91A(7) words substituted by 2008 c. 9 Sch. 22 para. 10(2)s. 91A(7)(a) words omitted by 2008 c. 9 Sch. 22 para. 19(2)(a)s. 91A(8)(b) words inserted by 2008 c. 9 Sch. 22 para. 10(3)s. 91A(11) inserted by 2007 c. 11 Sch. 5 para. 12(3)s. 91B inserted by 2005 c. 22 Sch. 7 para. 10(3)s. 91B repealed by 2009 c. 4 Sch. 1 para. 418 Sch. 3 Pt. 1s. 91B(1) words substituted by 2006 c. 25 Sch. 6 para. 14(2)(a)s. 91B(1) words substituted by 2006 c. 25 Sch. 6 para. 14(2)(b)s. 91B(2) words inserted by 2006 c. 25 Sch. 6 para. 14(3)s. 91B(2)(b) words omitted by 2008 c. 9 Sch. 22 para. 6(1)(b)s. 91B(2A) inserted by 2008 c. 9 Sch. 22 para. 8(2)s. 91B(3) words omitted by 2008 c. 9 Sch. 22 para. 8(3)s. 91B(4) words omitted by 2008 c. 9 Sch. 22 para. 8(3)s. 91B(4) words substituted by 2007 c. 11 Sch. 5 para. 13(2)s. 91B(5)(a) words omitted by 2008 c. 9 Sch. 22 para. 13(1)s. 91B(6A) inserted by 2008 c. 9 Sch. 22 para. 8(4)s. 91B(8) inserted by 2007 c. 11 Sch. 5 para. 13(3)s. 91C-91E inserted by 2005 c. 22 Sch. 7 para. 10(4)s. 91C repealed by 2009 c. 4 Sch. 1 para. 419 Sch. 3 Pt. 1s. 91C(1) words substituted by 2008 c. 9 Sch. 22 para. 11(2)s. 91C(3)(c) substituted by 2008 c. 9 Sch. 22 para. 14(1)s. 91C(3)(f) substituted by 2007 c. 11 Sch. 14 para. 15s. 91C(6) words substituted by 2008 c. 9 Sch. 22 para. 11(3)s. 91D repealed by 2009 c. 4 Sch. 1 para. 420 Sch. 3 Pt. 1s. 91D(2) substituted by 2006 c. 25 Sch. 6 para. 15(2)s. 91D(2)(a) word omitted by 2008 c. 9 Sch. 22 para. 15(1)s. 91D(2)(c) and word inserted by 2008 c. 9 Sch. 22 para. 15(1)s. 91D(2A) inserted by 2006 c. 25 Sch. 6 para. 15(3)s. 91D(7) words substituted by 2006 c. 25 Sch. 6 para. 15(4)s. 91D(8) words substituted by 2006 c. 25 Sch. 6 para. 15(5)s. 91D(11) words substituted by 2007 c. 3 Sch. 1 para. 373s. 91E repealed by 2009 c. 4 Sch. 1 para. 421 Sch. 3 Pt. 1s. 91E(1) words inserted by 2008 c. 9 Sch. 22 para. 16(2)(a)s. 91E(1) words inserted by 2008 c. 9 Sch. 22 para. 16(2)(b)s. 91E(3) words inserted by 2008 c. 9 Sch. 22 para. 16(3)s. 91F inserted by 2005 c. 22 Sch. 7 para. 10(5)s. 91F repealed by 2009 c. 4 Sch. 1 para. 422 Sch. 3 Pt. 1s. 91G inserted by 2005 c. 22 Sch. 7 para. 10(6)s. 91G repealed by 2009 c. 4 Sch. 1 para. 423 Sch. 3 Pt. 1s. 91H 91I and cross-heading inserted by 2008 c. 9 Sch. 22 para. 17(1)s. 91H repealed by 2009 c. 4 Sch. 1 para. 424 Sch. 3 Pt. 1s. 91I repealed by 2009 c. 4 Sch. 1 para. 425 Sch. 3 Pt. 1s. 93C inserted by 2006 c. 25 Sch. 6 para. 16(1)s. 93C repealed by 2009 c. 4 Sch. 1 para. 426 Sch. 3 Pt. 1s. 94A inserted by 2004 c. 12 Sch. 10 para. 13s. 94A repealed by 2009 c. 4 Sch. 1 para. 428 Sch. 3 Pt. 1s. 94A(1) words substituted by 2005 c. 7 Sch. 4 para. 28(2)s. 94B inserted by 2008 c. 9 Sch. 22 para. 18(1)s. 94B repealed by 2009 c. 4 Sch. 1 para. 429 Sch. 3 Pt. 1Sch. 9. para. 12E(4) modified (temp.) by S.I. 2008/1579 Sch. 4 para. 3(d)Commencement Orders yet to be applied to the Finance Act 1996:Commencement OrdersThis section lists the commencement orders yet to be applied to the whole Act. These effects are included in this view as they may be (but won’t necessarily be) relevant to the specific provision that you are viewing. Where applicable the commencement orders are listed under two headings, firstly those that bring some part of the Act you are viewing into force and secondly, those that bring into force legislation that affects some part of the legislation you are viewing. If you are viewing a prospective version or there is a prospective version available there may be commencement orders listed here that are relevant to the provision you are viewing.Commencement Orders bringing legislation that affects this Act into force:S.I. 2003/120 art. 2 Sch. commences (2002 c. 29)S.I. 2003/708 art. 2 commences (2001 c. 16)S.I. 2003/766 art. 2 Sch. commences (2002 c. 40)S.I. 2003/1397 art. 2(1) Sch. commences (2002 c. 40)S.I. 2003/2093 art. 2(1) Sch. 1 art. 2(2) Sch. 2 commences (2002 c. 40)S.I. 2004/2575 art. 2 Sch. 1 2 commences (2004 c. 20)S.I. 2005/950 art. 2-4 commences (2003 c. 44)S.I. 2005/1126 art. 2 commences (2005 c. 11)S.I. 2005/1444 art. 2 commences (2005 c. 14)S.I. 2005/1909 art. 2 commences (2005 c. 14)S.I. 2005/2122 art. 2 amendment to earlier commencing SI 2005/950 Sch. 2 para. 23S.I. 2006/982 art. 2 commences (2005 c. 22)S.I. 2007/2483 art. 2-4 commences (2007 c. 11)S.I. 2007/2532 art. 2 commences (2007 c. 11)S.I. 2008/2358 art. 2 3 commences (2008 c. 17)S.I. 2008/3068 art. 2-5 commences (2008 c. 17)S.I. 2009/402 art. 2 commences (2008 c. 9)S.I. 2009/403 art. 2 commences (2008 c. 9)S.I. 2009/404 art. 2 commences (2008 c. 9)S.I. 2009/511 art. 2 commences (2008 c. 9)S.I. 2009/571 art. 2-5 commences (2008 c. 9)S.I. 2009/803 art. 1(2) 10 commences (2008 c. 17)S.I. 2010/815 art. 2 commences (2009 c. 10)S.I. 2010/862 art. 2 art. 3 commences (2008 c. 17)S.I. 2010/867 art. 2 commences (2009 c. 10)S.R. 2006/21 art. 2 commences (S.I. 2005/1455 (N.I.))S.R. 2006/22 art. 2-7 transitional provisions for effects of SR 2006/21S.R. 2006/63 art. 2 commences (S.I. 2004/1501 (N.I.))97 Manufactured interest.E+W+S+N.I.(1)[F1For the purposes of the Corporation Tax Acts, a company has a relationship to which this section applies in any case where—]
(a)any amount (“manufactured interest”) is payable by or on behalf of, or to, [F2the company]F2 under any contract or arrangements relating to the transfer of an asset representing a loan relationship; and
(b)that amount is, or (when paid) will fall to be treated as, representative of interest under [F3that loan relationship]F3(“the real interest”).
[F4and references to a relationship to which this section applies, and to a company’s being party to such a relationship, shall be construed accordingly]
[F5(2)Where a company has a relationship to which this section applies—
(a)this Chapter shall have effect in relation to the company and the manufactured interest under the relationship—
(i)as it would have effect if the manufactured interest were interest payable on a loan by, or (as the case may be) to, the company and were accordingly interest under a loan relationship to which the company is a party, and
(ii)where that company is the company to which the manufactured interest is payable, as if that relationship were the one under which the real interest is payable, but
(b)the only credits or (subject to subsection (4A) below) debits to be brought into account for the purposes of this Chapter by virtue of this section in respect of a relationship are those relating to that interest,
and, subject to paragraphs (a)(ii) and (b) above, references in the Corporation Tax Acts to a loan relationship accordingly include a reference to a relationship to which this section applies.]
F5(3)Any question whether debits or credits falling to be brought into account in the case of any company by virtue of this section—
(a)are to be brought into account under section 82(2) above, or
(b)are to be treated as non-trading debits or non-trading credits,
shall be determined according to the extent (if any) to which the manufactured interest is paid for the purposes of a trade carried on by the company or is received in the course of activities forming an integral part of such a trade.
[F6(3A)To the extent that debits or credits fall to be brought into account by a company under section 82(2) above in the case of a relationship to which this section applies, the company shall be regarded for the purposes of this Chapter as being party to the relationship for the purposes of a trade carried on by the company.]
F6(4)Where section [F7736B(2) or]F7 737A(5) of the Taxes Act 1988 (deemed manufactured payments) has effect in relation to a transaction relating to an asset representing a loan relationship so as, for the purposes of [F8section 737 of, or] Schedule 23A to, that Act, to deem there to have been a payment representative of interest under that relationship, this section shall apply as it would have applied if such a representative payment had in fact been made.
[F9(4A)Where, for the purposes of section 736B of the Taxes Act 1988, a company is the borrower under a stock lending arrangement, then (pursuant to subsection (2A) of that section (which precludes deductions or group relief for the borrower)) no debits are to be brought into account for the purposes of this Chapter by that company in respect of the deemed representative payment under that section which is treated under subsection (4) above as if it had in fact been made.]
[F10(5)This section does not apply where the manufactured interest is treated by virtue of paragraph 5(2)(c) or (4)(c) of Schedule 23A to the Taxes Act 1988 (manufactured interest passing through the market) as not being income of the person who receives it.]
Annotations:Annotations are used to give authority for changes and other effects on the legislation you are viewing and to convey editorial information. They appear at the foot of the relevant provision or under the associated heading. Annotations are categorised by annotation type, such as F-notes for textual amendments and I-notes for commencement information (a full list can be found in the Editorial Practice Guide). Each annotation is identified by a sequential reference number. For F-notes, M-notes and X-notes, the number also appears in bold superscript at the relevant location in the text. All annotations contain links to the affecting legislation.Amendments (Textual)F1Words in s. 97(1) substituted (24.7.2002 with effect as mentioned in s. 82(2) of the amending Act) by Finance Act 2002 (c. 23), s. 82(1), Sch. 25 Pt. 1 para. 13(2)(a)F2Words in s. 97(1)(a) substituted (24.7.2002 with effect as mentioned in s. 82(2) of the amending Act) by Finance Act 2002 (c. 23), s. 82(1), Sch. 25 Pt. 1 para. 13(2)(b)F3Words in s. 97(1)(b) substituted (24.7.2002 with effect as mentioned in s. 82(2) of the amending Act) by Finance Act 2002 (c. 23), s. 82(1), Sch. 25 Pt. 1 para. 13(2)(c)F4Words in s. 97(1) added (24.7.2002 with effect as mentioned in s. 82(2) of the amending Act) by Finance Act 2002 (c. 23), s. 82(1), Sch. 25 Pt. 1 para. 13(2)(d)F5S. 97(2) substituted (24.7.2002 with effect as mentioned in s. 82(2) of the amending Act) by Finance Act 2002 (c. 23), s. 82(1), Sch. 25 Pt. 1 para. 13(3)F6S. 97(3A) inserted (24.7.2002 with effect as mentioned in s. 82(2) of the amending Act) by Finance Act 2002 (c. 23), s. 82(1), Sch. 25 Pt. 1 para. 13(4)F7Words in s. 97(4) inserted (24.7.2002 with effect as mentioned in s. 82(2) of the amending Act) by Finance Act 2002 (c. 23), s. 82(1), Sch. 25 Pt. 1 para. 13(5)F8Words in s. 97(4) repealed (19.3.1997 with effect as mentioned in Sch. 18 Pt. VI(10), Notes 4, 6 of the amending Act) by 1997 c. 16, s. 113, Sch. 18 Pt. VI(10)F9S. 97(4A) inserted (24.7.2002 with effect as mentioned in s. 82(2) of the amending Act) by Finance Act 2002 (c. 23), s. 82(1), Sch. 25 Pt. 1 para. 13(6)F10S. 97(5) repealed (19.3.1997 with effect as mentioned in Sch. 18 Pt. VI(10), Notes 3, 4, 6 of the amending Act) by 1997 c. 16, s. 113, Sch. 18 Pt. VI(10)Previous: ProvisionNext: ProvisionBack to topOptions/HelpPrint OptionsPrint The Whole ActPDF The Whole ActWeb page The Whole ActPrint The Whole PartPDF The Whole PartWeb page The Whole PartPrint The Whole ChapterPDF The Whole ChapterWeb page The Whole ChapterPrint The Whole Cross HeadingPDF The Whole Cross HeadingWeb page The Whole Cross HeadingPrint This Section onlyPDF This Section onlyWeb page This Section onlyYou have chosen to open The Whole ActThe Whole Act you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.Would you like to continue?Continue to openYou have chosen to open The Whole Act as a PDFThe Whole Act you have selected contains over 200 provisions and might take some time to download.Would you like to continue?Continue to openYou have chosen to open The Whole Act without SchedulesThe Whole Act without Schedules you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.Would you like to continue?Continue to openYou have chosen to open The Whole Act without Schedules as a PDFThe Whole Act without Schedules you have selected contains over 200 provisions and might take some time to download.Would you like to continue?Continue to openYou have chosen to open the Whole ActThe Whole Act you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.Would you like to continue?Continue to openYou have chosen to open the Whole Act without Schedules