Finance Act, 1993

Amendment of section 84A (limitation on meaning of “distribution”) of Corporation Tax Act, 1976.

45.—(1) Section 84A (as amended by section 40 of the Finance Act, 1992 ) of the Corporation Tax Act, 1976 , is hereby amended—

(a) by the substitution of the following paragraph for paragraph (c) of subsection (3A):

“(c) For the purposes of this subsection and subsection (3B)—

(i) relevant principal advanced by a company at any time on or after a day includes any relevant principal advanced on or after that day to a borrower under an agreement entered into before that day, and

(ii) where, on or after the 6th day of May, 1993, a period of repayment of relevant principal advanced by a company is extended (whether or not the right to such an extension arose out of the terms of the agreement to advance the said relevant principal), the company shall be treated as having—

(I) received repayment of the said relevant principal, and

(II) advanced a corresponding amount of relevant principal,

on the date on which, apart from the said extension, the said relevant principal fell to be repaid.”,

and

(b) by the substitution of the following subparagraph for subparagraph (iii) of paragraph (b) of subsection (3B):

“(iii) the borrower is not a company which carries on relevant trading operations (within the meaning of section 39B of the Finance Act, 1980 ) or intends to carry on such trading operations:”.

(2) Subsection (1) (b) shall be deemed to have applied and have effect as on and from the 1st day of August, 1992.