Section 398 Transactions in deposits with and without certificates or in debts.

United Kingdom

M1Where F1a company sustains a loss on the exercise or disposal of a right to receive any amount, being a right to which section 56(2) F2. . . applies, in a case where—

(a)

if a profit had arisen from that exercise or disposal, that profit would have been chargeable to F3corporation tax by virtue of section 56(2) F4. . . , and

(b)

F5the company is chargeable to corporation tax under F6Part 5 of CTA 2009 (loan relationships) in respect of interest payable on that amount,

then the amount of that interest shall be included in the amounts against which F7the amount of its loss may be set off under F8section 91 of CTA 2010.

Annotations

Textual amendments

F1: Words in s. 398 substituted (6.4.2007 with effect in accordance with s. 1034(1) of the amending Act) by Income Tax Act 2007 (c. 3), Sch. 1 para. 75(2) (with Sch. 2)
F2: Words in s. 398 repealed (6.4.2007 with effect in accordance with s. 1034(1) of the repealing Act) by Income Tax Act 2007 (c. 3), Sch. 1 para. 75(3), Sch. 3 Pt. 1 (with Sch. 2)
F3: Words in s. 398(a) inserted (6.4.2007 with effect in accordance with s. 1034(1) of the amending Act) by Income Tax Act 2007 (c. 3), Sch. 1 para. 75(4)(a) (with Sch. 2)
F4: Words in s. 398(a) repealed (6.4.2007 with effect in accordance with s. 1034(1) of the repealing Act) by Income Tax Act 2007 (c. 3), Sch. 1 para. 75(4)(b), Sch. 3 Pt. 1 (with Sch. 2)
F5: Words in s. 398(b) substituted (6.4.2007 with effect in accordance with s. 1034(1) of the amending Act) by Income Tax Act 2007 (c. 3), Sch. 1 para. 75(5) (with Sch. 2)
F6: Words in s. 398(b) substituted (1.4.2009 with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), Sch. 1 para. 114 (with Sch. 2 Pts. 1, 2)
F7: Words in s. 398 substituted (6.4.2007 with effect in accordance with s. 1034(1) of the amending Act) by Income Tax Act 2007 (c. 3), Sch. 1 para. 75(6) (with Sch. 2)
F8: Words in s. 398 substituted (1.4.2010 with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), Sch. 1 para. 36 (with Sch. 2)

Marginal citations

M1: Source—1973 s.26(2); 1974 s.30(2)