UK and International Tax news
HMRC Issues Draft Guidance On Modifications To The Corporate Rescue Exemption
Monday 26th January 2015
On 10 December 2014 the Government published draft legislation to be included in FB 2015, together with explanatory notes. These include a schedule of amendments to the corporation tax rules on loan relationships in part 5 of CTA 2009.
New s.322(5B) and s.323A CTA 2009 will remove the obligation to bring into account a loan relationships credit arising on a release, modification or replacement of debt in certain circumstances where a company is unable to pay its debts. The new sections will apply to the release, modification or replacement of a debtor relationship of a company on or after 1 January 2015.
HMRC has recently issued draft guidance on its interpretation of the proposed legislation as published on 10 December 2014, to be included in its Corporate Finance Manual (CFM) following the enactment of the legislation.
Comments have been invited on this draft guidance and the final text incorporated into the CFM will take account of comments received and any amendments to the draft clauses.Contact Us