Finance Act, 1996
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Amendment of section 35A (chargeable gains of life business) of Corporation Tax Act, 1976. |
47.—(1) Section 35A (inserted by section 11 (d) of the Finance Act, 1993 ) of the Corporation Tax Act, 1976 , is hereby amended by the insertion after subsection (1) of the following: | |
“(1A) (a) Where in an accounting period a company disposes of any securities and in the immediately following accounting period interest becoming payable in respect of the securities is receivable by the company, the gain or loss accruing on the disposal shall be computed as if the price paid by the company for the securities was reduced by the appropriate amount in respect of the interest: | ||
Provided that where for an accounting period the provisions of this paragraph apply so as to reduce the price paid for securities, the amount by which the price paid for the securities is reduced shall be treated as a loss arising, in the immediately following accounting period, from the disposal of the securities. | ||
(b) In this subsection— | ||
‘the appropriate amount in respect of the interest’ means the appropriate amount in respect of the interest which would be determined in accordance with Schedule 11 to the Income Tax Act, 1967 , if the company were the first buyer and it carried on a trade to which section 368 (1) of the said Act applies: | ||
Provided that in so determining the appropriate amount in respect of the interest in accordance with the said Schedule 11, paragraph 3 (4) of that Schedule shall apply as if there were deleted ‘in the opinion of the Appeals Commissioners’; | ||
‘securities’ has the same meaning as in subsection (1) of section 29 of the Finance Act, 1984 .”. | ||
(2) This section shall apply and have effect as respects a disposal on or after the 28th day of March, 1996. |