Section 193 Interaction between claims under sections 174 and 192(1)

(1)

In this section “the loan provision” means the actual provision made or imposed between—

(a)

the F1borrower, and

F2(b)

another person (“the lender”)

which is provision in relation to the F3borrowing transaction.

(2)

Subsections (3) and (4) apply if—

(a)

the guarantor company makes a claim under section 192(1), and

(b)

the F4lender makes a claim under section 174 in relation to the loan provision.

(3)

In determining the arm's length provision for the purposes of section 174(2)(a) in relation to the F5lender’s claim, additional amounts are to be brought into account as credits corresponding to the debits that fall to be brought into account by the guarantor company because of section 192(1).

(4)

If—

(a)

the F6lender makes its claim under section 174 before the guarantor company makes its claim under section 192(1), and

(b)

the calculation on which the F7lender’s claim is based does not comply with subsection (3),

the guarantor company's claim is to be disallowed.

Annotations

Textual amendments

F1: Word in s. 193(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. 9(a)(i), 12
F2: S. 193(1)(b) substituted (with effect in accordance with Sch. 6 para. 12 of the amending Act) by Finance Act 2026 (c. 11), Sch. 6 paras. 9(a)(ii), 12
F3: Words in s. 193(1) substituted (with effect in accordance with Sch. 6 para. 12 of the amending Act) by Finance Act 2026 (c. 11), Sch. 6 paras. 9(a)(iii), 12
F4: Word in s. 193(2)(b) substituted (with effect in accordance with Sch. 6 para. 12 of the amending Act) by Finance Act 2026 (c. 11), Sch. 6 paras. 9(b), 12
F5: Word in s. 193(3) substituted (with effect in accordance with Sch. 6 para. 12 of the amending Act) by Finance Act 2026 (c. 11), Sch. 6 paras. 9(c), 12
F6: Word in s. 193(4)(a) substituted (with effect in accordance with Sch. 6 para. 12 of the amending Act) by Finance Act 2026 (c. 11), Sch. 6 paras. 9(d)(i), 12
F7: Word in s. 193(4)(b) substituted (with effect in accordance with Sch. 6 para. 12 of the amending Act) by Finance Act 2026 (c. 11), Sch. 6 paras. 9(d)(ii), 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