Source: http://www.legislation.gov.uk/ukpga/2009/4/part/5/chapter/15
Timestamp: 2020-01-18 22:52:43
Document Index: 3544073

Matched Legal Cases: ['art 5', 'art 5', 'art 5', 'art 4', 'art 4', 'art 4', 'art 4', 'art 4', 'art 4', 'art 4', 'art 4', 'art 4', 'art 4', 'art 4', 'art 4', 'art 4', 'art 4', 'art 4']

Changes over time for: Chapter 15
Changes and effects yet to be applied to Part 5 Chapter 15:
Chapter 15U.K.Tax avoidance
Unallowable purposes and tax relief schemesU.K.
442Meaning of “unallowable purpose”U.K.
(1)For the purposes of section 441 a loan relationship of a company has an unallowable purpose in an accounting period if, at times during that period, the purposes for which the company—
(a)is a party to the relationship, or
(a)is a party to a loan relationship at any time, or
(b)enters into a transaction which is a related transaction by reference to a loan relationship of the company.
(4)For the purposes of subsection (1) the tax avoidance purpose is only regarded as a business or other commercial purpose of the company if it is not—
(a)the main purpose for which the company is a party to the loan relationship or, as the case may be, enters into the related transaction, or
(5)Subsection (6) applies if relief is claimed [F3under Chapter 4 of Part 5 of CTA 2010 (claims for group relief)]—
(7)In this section “the claimant company” and “the surrendering company” have the same meaning as in [F4Part 5 of CTA 2010].
F3Words in s. 443(5) substituted (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 616(2) (with Sch. 2)
F4Words in s. 443(7) substituted (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 616(3) (with Sch. 2)
(3)This section is subject to section 445 (disapplication of this section where [F5Part 4 of TIOPA 2010] applies).
F5Words in s. 444(3) substituted (with effect in accordance with s. 381(1) of the amending Act) by Taxation (International and Other Provisions) Act 2010 (c. 8), s. 381(1), Sch. 8 para. 132 (with Sch. 9 paras. 1-9, 22)
445Disapplication of section 444 where [F6Part 4 of TIOPA 2010] appliesU.K.
(1)Section 444 does not apply, and [F7Part 4 of TIOPA 2010] (provision not at arm's length) applies instead, to credits or debits in respect of amounts which—
(a)fall to be adjusted for tax purposes under [F8that Part], or
(b)are within [F8that Part] without falling to be so adjusted (see subsection (3)).
(a)section 340(7) (disapplication of [F9Part 4 of TIOPA 2010] where group member replaces another as party to loan), and
(b)section 447(5) (disapplication of [F10that Part] for exchange gains and losses).
(3)For the purposes of subsection (1), an amount is within [F11Part 4 of TIOPA 2010] without falling to be adjusted under it in a case where—
[F12(a)the condition in section 147(1)(a) of TIOPA 2010 is met,
[F13(3A)Section 148 of TIOPA 2010 (when the participation condition is met) applies for the purposes of subsection (3)(aa) as it applies for the purposes of section 147(1)(b) of TIOPA 2010.]
(4)For the way in which this Part applies where adjustments are made under [F14Part 4 of TIOPA 2010,] see section 446.
(5)In this section “the actual provision” and “the arm's length provision” have the same meaning as in [F15Part 4 of TIOPA 2010 (see sections 149 and 151 of that Act)].
F6Words in s. 445 title substituted (with effect in accordance with s. 381(1) of the amending Act) by Taxation (International and Other Provisions) Act 2010 (c. 8), s. 381(1), Sch. 8 para. 133(11) (with Sch. 9 paras. 1-9, 22)
F7Words in s. 445(1) substituted (with effect in accordance with s. 381(1) of the amending Act) by Taxation (International and Other Provisions) Act 2010 (c. 8), s. 381(1), Sch. 8 para. 133(2) (with Sch. 9 paras. 1-9, 22)
F8Words in s. 445(1)(a)(b) substituted (with effect in accordance with s. 381(1) of the amending Act) by Taxation (International and Other Provisions) Act 2010 (c. 8), s. 381(1), Sch. 8 para. 133(3) (with Sch. 9 paras. 1-9, 22)
F9Words in s. 445(2)(a) substituted (with effect in accordance with s. 381(1) of the amending Act) by Taxation (International and Other Provisions) Act 2010 (c. 8), s. 381(1), Sch. 8 para. 133(4) (with Sch. 9 paras. 1-9, 22)
F10Words in s. 445(2)(b) substituted (with effect in accordance with s. 381(1) of the amending Act) by Taxation (International and Other Provisions) Act 2010 (c. 8), s. 381(1), Sch. 8 para. 133(5) (with Sch. 9 paras. 1-9, 22)
F11Words in s. 445(3) substituted (with effect in accordance with s. 381(1) of the amending Act) by Taxation (International and Other Provisions) Act 2010 (c. 8), s. 381(1), Sch. 8 para. 133(6) (with Sch. 9 paras. 1-9, 22)
F12S. 445(3)(a)(aa) substituted for s. 445(3)(a) (with effect in accordance with s. 381(1) of the amending Act) by Taxation (International and Other Provisions) Act 2010 (c. 8), s. 381(1), Sch. 8 para. 133(7) (with Sch. 9 paras. 1-9, 22)
F13S. 445(3A) inserted (with effect in accordance with s. 381(1) of the amending Act) by Taxation (International and Other Provisions) Act 2010 (c. 8), s. 381(1), Sch. 8 para. 133(8) (with Sch. 9 paras. 1-9, 22)
F14Words in s. 445(4) substituted (with effect in accordance with s. 381(1) of the amending Act) by Taxation (International and Other Provisions) Act 2010 (c. 8), s. 381(1), Sch. 8 para. 133(9) (with Sch. 9 paras. 1-9, 22)
F15Words in s. 445(5) substituted (with effect in accordance with s. 381(1) of the amending Act) by Taxation (International and Other Provisions) Act 2010 (c. 8), s. 381(1), Sch. 8 para. 133(10) (with Sch. 9 paras. 1-9, 22)
446Bringing into account adjustments made under [F16Part 4 of TIOPA 2010]U.K.
(1)This section deals with the credits and debits which are to be brought into account for the purposes of this Part as a result of [F17Part 4 of TIOPA 2010] (provision not at arm's length) applying in relation to a company's loan relationships or related transactions.
(2)Subsection (3) applies if under [F18Part 4 of TIOPA 2010] an amount (“the imputed amount”) is treated as an amount of profits or losses arising to a company from any of its loan relationships or related transactions.
(4)Subsection (5) applies if under [F19Part 4 of TIOPA 2010] an amount is treated as interest payable under any of a company's loan relationships.
(6)Subsection (7) applies if under [F20Part 4 of TIOPA 2010] an amount is treated as expenses incurred by a company under or for the purposes of any of its loan relationships or related transactions.
F16Words in s. 446 title substituted (with effect in accordance with s. 381(1) of the amending Act) by Taxation (International and Other Provisions) Act 2010 (c. 8), s. 381(1), Sch. 8 para. 134(2) (with Sch. 9 paras. 1-9, 22)
F17Words in s. 446(1) substituted (with effect in accordance with s. 381(1) of the amending Act) by Taxation (International and Other Provisions) Act 2010 (c. 8), s. 381(1), Sch. 8 para. 134(2) (with Sch. 9 paras. 1-9, 22)
F18Words in s. 446(2) substituted (with effect in accordance with s. 381(1) of the amending Act) by Taxation (International and Other Provisions) Act 2010 (c. 8), s. 381(1), Sch. 8 para. 134(2) (with Sch. 9 paras. 1-9, 22)
F19Words in s. 446(4) substituted (with effect in accordance with s. 381(1) of the amending Act) by Taxation (International and Other Provisions) Act 2010 (c. 8), s. 381(1), Sch. 8 para. 134(2) (with Sch. 9 paras. 1-9, 22)
F20Words in s. 446(6) substituted (with effect in accordance with s. 381(1) of the amending Act) by Taxation (International and Other Provisions) Act 2010 (c. 8), s. 381(1), Sch. 8 para. 134(2) (with Sch. 9 paras. 1-9, 22)
Transactions not at arm's length: exchange gains and lossesU.K.
447Exchange gains and losses on debtor relationships: loans disregarded under [F21Part 4 of TIOPA 2010]U.K.
(c)as a result of [F22section 147(3) or (5) of TIOPA 2010] (provision not at arm's length) the profits and losses of the company are calculated for tax purposes for the period as if—
(5)Nothing in [F23Part 4 of TIOPA 2010] requires the amounts brought into account under this Part in respect of exchange gains or losses from loan relationships to be calculated on the assumption that the arm's length provision had been made instead of the actual provision.
(7)In this section “the arm's length provision” and “the actual provision” have the same meaning as in [F24Part 4 of TIOPA 2010 (see sections 149 and 151 of that Act)].
F21Words in s. 447 title substituted (with effect in accordance with s. 381(1) of the amending Act) by Taxation (International and Other Provisions) Act 2010 (c. 8), s. 381(1), Sch. 8 para. 135(5) (with Sch. 9 paras. 1-9, 22)
F22Words in s. 447(1)(c) substituted (with effect in accordance with s. 381(1) of the amending Act) by Taxation (International and Other Provisions) Act 2010 (c. 8), s. 381(1), Sch. 8 para. 135(2) (with Sch. 9 paras. 1-9, 22)
F23Words in s. 447(5) substituted (with effect in accordance with s. 381(1) of the amending Act) by Taxation (International and Other Provisions) Act 2010 (c. 8), s. 381(1), Sch. 8 para. 135(3) (with Sch. 9 paras. 1-9, 22)
F24Words in s. 447(7) substituted (with effect in accordance with s. 381(1) of the amending Act) by Taxation (International and Other Provisions) Act 2010 (c. 8), s. 381(1), Sch. 8 para. 135(4) (with Sch. 9 paras. 1-9, 22)
(c)the whole of any interest or other distribution out of the assets of the company in respect of securities of the company which represent the relationship is regarded as a distribution because of [F25section 1015(6) of CTA 2010] (equity notes held by company associated with issuer or by a funded company).
F25Words in s. 448(1)(c) substituted (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 617 (with Sch. 2)
449Exchange gains and losses on creditor relationships: no corresponding debtor relationshipU.K.
(a)a company would be treated as having a debtor relationship in an accounting period if a claim were made under [F26section 192(1) of TIOPA 2010] in relation to that period, and
(a)because of a claim made under [F27section 192(1) of TIOPA 2010] more than one company is treated for any purpose as having a debtor relationship represented by the same liability, or
F26Words in s. 452(1)(a) substituted (with effect in accordance with s. 381(1) of the amending Act) by Taxation (International and Other Provisions) Act 2010 (c. 8), s. 381(1), Sch. 8 para. 136 (with Sch. 9 paras. 1-9, 22)
F27Words in s. 452(3)(a) substituted (with effect in accordance with s. 381(1) of the amending Act) by Taxation (International and Other Provisions) Act 2010 (c. 8), s. 381(1), Sch. 8 para. 136 (with Sch. 9 paras. 1-9, 22)
Connected parties deriving benefit from creditor relationshipsU.K.
F28453Connected parties deriving benefit from creditor relationshipsU.K.
F28S. 453 omitted (19.7.2011) (with effect in accordance with Sch. 5 para. 8(2)(3) of the amending Act) by virtue of Finance Act 2011 (c. 11), Sch. 5 para. 8(1)
Tax advantages from resetting interest rates (“reset bonds”)U.K.
(5)But this section does not apply if [F29section 147(3) or (5) of TIOPA 2010] (provision not at arm's length) operates in relation to the disposal so as to increase the tax liability of the company.
F29Words in s. 455(5) substituted (with effect in accordance with s. 381(1) of the amending Act) by Taxation (International and Other Provisions) Act 2010 (c. 8), s. 381(1), Sch. 8 para. 137 (with Sch. 9 paras. 1-9, 22)
[F30DerecognitionU.K.
F30S. 455A and cross-heading inserted (19.7.2011) (with effect in accordance with Sch. 4 para. 13 of the amending Act) by Finance Act 2011 (c. 11), Sch. 4 para. 5