Paragraph 11 Other references to securities

United Kingdom

(1)

In the italic heading before section 181, for “a security” substitute “borrowing”.

(2)

In section 181 (section 182 claims)—

(a)

in the heading, for “a security” substitute “borrowing”,

(b)

in subsection (1)—

(i)

omit paragraph (a), and

(ii)

in paragraph (b), for “a security issued by one of those companies” substitute “borrowing”, and

(c)

for subsection (4) and (5) substitute—

“(4)
For the purposes of this section “borrowing” has the meaning it has in sections 153A and 153B (see section 154).”

(3)

In section 197 (qualifying conditions for purposes of section 198)—

(a)

in subsection (2)—

(i)

omit “(“the issuing company”) is a company that”, and

(ii)

for “liabilities under a security issued by it” substitute “borrowing liabilities”,

(b)

in subsection (4)—

(i)

for “issuing company” substitute “borrower”, and

(ii)

for “under the security” substitute “in respect of the borrowing”,

(c)

in subsection (5), for “153” substitute “section 153A”,

(d)

in subsection (6) for “issuing company” substitute “borrower”,

(e)

in subsection (7)(a), for “153” substitute “section 153A”, and

(f)

for subsections (8) to (10) substitute—

“(8)
For the purposes of this Chapter, “borrowing” and “guarantee” have the meanings they have in sections 153A and 153B (see section 154).”

(4)

In section 198 (balancing payments by guarantor to issuer: no charge to, or relief from, tax)—

(a)

in the heading, for “issuer” substitute “borrower”,

(b)

in subsection (1)—

(i)

for “guarantor companies” substitute “guarantors”, and

(ii)

after “197(4)” insert “that are result of the application of section 153A,

(c)

in subsection (2)(a)—

(i)

for “the purposes of corporation tax” substitute “tax purposes”, and

(ii)

for “issuing company” substitute “borrower”,

(d)

in subsection (2)(b) omit “Corporation”,

(e)

in subsection (3) omit the definition of “the issuing company”.

(5)

In section 199 (pre-conditions for making election under section 200)—

(a)

in subsection (5), for “a security (the “relevant security”)” substitute “borrowing (“the relevant borrowing”)”, and

(b)

omit subsections (7) and (8).

(6)

In section 200 (election to pay tax rather than make balancing payments)—

(a)

in subsection (1)—

(i)

for “section 152”, in both places it occurs, substitute “section 153A”, and

(ii)

for “security”, in both places it occurs, substitute “borrowing”, and

(b)

in subsection (3), for “security” substitute “borrowing”.

(7)

In section 201 (pre-conditions for making election under section 202)—

(a)

in subsection (5)(a)—

(i)

for “the issuing of a security (“the relevant security”)” substitute “borrowing (“the relevant borrowing”)”,

(ii)

omit “(“the issuing company”)”,

(b)

omit subsections (7) to (9).

(8)

In section 202 (election, in guarantee case, to pay tax rather than make balancing payments)—

(a)

in subsection (1)—

(i)

for “section 153”, in both places it occurs, substitute “section 153A”, and

(ii)

for “security”, in both places it occurs, substitute “borrowing”, and

(b)

in subsection (3), for “security” substitute “borrowing”.

(9)

In section 203 (elections under section 200 or 202—

(a)

in subsection (2) for “security is issued” substitute “borrowing first occurs”,

(b)

in subsection (4), for “security is issued” substitute “borrowing first occurs”,

(c)

in subsection (8) for “security” substitute “borrowing”, and

(d)

in subsection (9)—

(i)

for “security was issued” substitute “borrowing first occurred”,

(ii)

for “been issued” substitute “first borrowed”.