Section 306A — Corporation Tax Act 2009: Matters in respect of which amounts to be brought into account

Matters in respect of which amounts to be brought into account 306A 1 The matters in respect of which amounts are to be brought into account for the purposes of this Part in respect of a company's loan relationships are—

a profits and losses of the company that arise to it from its loan relationships and related transactions (excluding interest or expenses),

b interest under those relationships, and c expenses incurred by the company under or for the purposes of those relationships and transactions.

2 Expenses are only treated as incurred as mentioned in subsection (1)(c) if they are incurred directly—

a in bringing any of the loan relationships into existence, b in entering into or giving effect to any of the related transactions, c in making payments under any of those relationships or as a result of any of those transactions, or d in taking steps to ensure the receipt of payments under any of those relationships or in accordance with any of those transactions.

3 For the treatment of pre-loan relationship and abortive expenses, see section 329.