Schedule 20 | Loan Relationships: Connected Parties | Finance Act 2009 C10

SCHEDULE 20 Loan Relationships: Connected Parties

Finance Act 2009 (2009 c 10) | Legislation

SCHEDULE 20 Loan Relationships: Connected Parties

Section 41 Introduction

Part 5 of CTA 2009 (loan relationships) is amended as follows.

Section 374

(1) Section 374 (late interest: connection between debtor and person standing in position of creditor) is amended as follows.

(2) In subsection (1)—

(a) in paragraph (b), after “company” insert “(“C”)”, and

(b) insert at the end (not as part of paragraph (b))—

“and the condition in subsection (1A) is met.”

(3) After that subsection insert—

“(1A) The condition is that C is—

(a) resident for tax purposes in a non-qualifying territory at any time in the actual accrual period, or

(b) effectively managed in a non-taxing non-qualifying territory at any such time.”

(4) Insert at the end—

“(3) For the purposes of this section—

(a) “non-qualifying territory” has the meaning given by paragraph 5E of Schedule 28AA to ICTA,

(b) a non-qualifying territory is “non-taxing” if companies are not under its law liable to tax by reason of domicile, residence or place of management, and

(c) “resident for tax purposes” means liable, under the law of the non-qualifying territory, to tax there by reason of domicile, residence or place of management.”