Section 191 When sections 192 to 194 apply

(1)

Sections 192 to 194 apply if—

(a)

one of the affected persons (“the F1borrower”) F2has borrowing liabilities,

(b)

those liabilities are to any extent the subject of a guarantee provided by a company (“the guarantor company”),

(c)

in calculating the profits and losses of the F3borrower for tax purposes, the amounts to be deducted in respect of interest or other amounts payable F4in respect of the borrowing are required to be reduced (whether or not to nil) under section 147(3) or (5), and

F5(d)

the reduction is a result of provision for the guarantee not being regarded as arm’s length in accordance with section 153A (certain guarantees not capable of being arm’s length).

F6(2)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(5)

In this Chapter—

F7“borrowing”, “guarantee” and “implicit support” have the meanings they have in sections 153A and 153B (see section 154);
“the borrowing transaction” means the transaction mentioned in subsection (1)(a);
“the guarantor company” has the meaning given by subsection (1)(b),
“the F8borrower” has the meaning given by subsection (1)(a), and
F9...

Annotations

Textual amendments

F1: Word in s. 191(1)(a) substituted (with effect in accordance with Sch. 6 para. 12 of the amending Act) by Finance Act 2026 (c. 11), Sch. 6 paras. 6(2)(a)(i), 12
F2: Words in s. 191(1)(a) substituted (with effect in accordance with Sch. 6 para. 12 of the amending Act) by Finance Act 2026 (c. 11), Sch. 6 paras. 6(2)(a)(ii), 12
F3: Word in s. 191(1)(c) substituted (with effect in accordance with Sch. 6 para. 12 of the amending Act) by Finance Act 2026 (c. 11), Sch. 6 paras. 6(2)(b)(i), 12
F4: Words in s. 191(1)(c) substituted (with effect in accordance with Sch. 6 para. 12 of the amending Act) by Finance Act 2026 (c. 11), Sch. 6 paras. 6(2)(b)(ii), 12
F5: S. 191(1)(d) substituted (with effect in accordance with Sch. 6 para. 12 of the amending Act) by Finance Act 2026 (c. 11), Sch. 6 paras. 6(2)(c), 12
F6: S. 191(2)-(4) omitted (with effect in accordance with Sch. 6 para. 12 of the amending Act) by virtue of Finance Act 2026 (c. 11), Sch. 6 paras. 6(3), 12
F7: Words in s. 191(5) inserted (with effect in accordance with Sch. 6 para. 12 of the amending Act) by Finance Act 2026 (c. 11), Sch. 6 paras. 6(4)(c), 12
F8: Word in s. 191(5) substituted (with effect in accordance with Sch. 6 para. 12 of the amending Act) by Finance Act 2026 (c. 11), Sch. 6 paras. 6(4)(a), 12
F9: Words in s. 191(5) omitted (with effect in accordance with Sch. 6 para. 12 of the amending Act) by virtue of Finance Act 2026 (c. 11), Sch. 6 paras. 6(4)(b), 12

Notes on Part 4

Modifications

C1: Pt. 4 excluded by 2010 c. 4, s. 938N (as inserted (19.7.2011) by Finance Act 2011 (c. 11), Sch. 5 para. 2)
C2: Pt. 4 excluded (1.10.2011) by Postal Services Act 2011 (c. 5), s. 93(2)(3), Sch. 2 para. 6(2); S.I. 2011/2329, art. 3
C3: Pt. 4 excluded (1.4.2012) by Budget Responsibility and National Audit Act 2011 (c. 4), s. 29, Sch. 4 para. 3(2); S.I. 2011/2576, art. 5
C4: Pt. 4 excluded (with effect in accordance with s. 148 of the amending Act) by Finance Act 2012 (c. 14), s. 129(11) (with s. 147, Sch. 17)

Notes on Chapter 5

Textual amendments

F1: Words in s. 191 cross-heading substituted (with effect in accordance with Sch. 6 para. 12 of the amending Act) by Finance Act 2026 (c. 11), Sch. 6 paras. 5, 12

Modifications

C1: Pt. 4 Chs. 1 and 3-6 applied (1.4.2022 in relation to accounting periods beginning on or after that date) by Finance Act 2022 (c. 3), s. 51(1), Sch. 9 paras. 3, 4