Section 385 The tax-interest income amounts of a companyF1
References in this Part to a “tax-interest income amount” of a company for a period of account of a worldwide group are to any amount that—
is (or apart from this Part would be) brought into account for the purposes of corporation tax in a relevant accounting period of the company, and
meets condition A, B, C or D.
Condition A is that the amount is a relevant loan relationship credit (see section 386).
Condition B is that the amount is a relevant derivative contract credit (see section 387).
Condition C is that the amount is in respect of the financing income implicit in amounts receivable under a relevant arrangement or transaction.
In subsection (4) “relevant arrangement or transaction” means—
a finance lease,
debt factoring, or any similar transaction, or
a service concession arrangement if and to the extent that the arrangement is accounted for as a financial asset.
Condition D is that the amount is in respect of income that—
is receivable from another company, and
is in consideration of the provision of a guarantee of any borrowing of that other company.
Subsection (9) applies if an accounting period in which a tax-interest income amount is (or apart from this Part would be) brought into account for the purposes of corporation tax contains one or more disregarded periods.
A “disregarded period” is any period falling within the accounting period—
which does not fall within the period of account of the worldwide group, or
throughout which the company is not a member of the group.
Where this subsection applies, the tax-interest income amount mentioned in subsection (7) is reduced by such amount as is referable, on a just and reasonable basis, to the disregarded period or periods mentioned in that subsection.
An amount may be reduced to nil under subsection (9).
Annotations
Textual amendments
- F1
Pt. 10: the existing Pt. 10 renumbered as Pt. 11 (except for ss. 375, 376 which are repealed), the existing ss. 372-374, 377-382 renumbered as ss. 499-507 and a new Pt. 10 (ss. 372-498) inserted (with effect in accordance with Sch. 5 para. 25(1)-(3) of the amending Act) by Finance (No. 2) Act 2017 (c. 32), Sch. 5 para. 1, 10(1)(2)(a)(3) (with Sch. 5 paras. 27, 32-34)
Notes on Part 10
Modifications
- C1
Pt. 10 excluded by 2010 c. 4, s. 937NA (as inserted (with effect in accordance with Sch. 5 para. 25(1)(2) of the amending Act) by Finance (No. 2) Act 2017 (c. 32), Sch. 5 para. 7)
- C2
Pt. 10 excluded by 2010 c. 4, s. 938V(d) (as substituted (with effect in accordance with Sch. 5 para. 25(1)(2) of the amending Act) by Finance (No. 2) Act 2017 (c. 32), Sch. 5 para. 9)
- C3
Pt. 10 excluded by 2010 c. 4, s. 938N(e) (as substituted (with effect in accordance with Sch. 5 para. 25(1)(2) of the amending Act) by Finance (No. 2) Act 2017 (c. 32), Sch. 5 para. 8)