Section 399 — Corporation Tax Act 2009: Basic rules

Basic rules 399 1 This section applies if a loan relationship is represented by an index-linked gilt-edged security.

2 The amounts to be brought into account for the purposes of this Part are to be determined using fair value accounting.

3 For provision requiring adjustments to be made to amounts determined under subsection (2), see sections 400 to 400C (adjustments for changes in index).

4 In this section and sections 400 to 400C— “ index-linked gilt-edged securities ” means any gilt-edged securities under which the amounts of the payments are determined wholly or partly by reference to an index of prices published by the Statistics Board; “ relevant prices index ”, in relation to an index-linked gilt-edged security, means the index of prices by reference to which the amounts of the payments under the security are wholly or partly determined.

5 For the meaning of “gilt-edged securities”, see section 476(1).

6 In the case of insurance companies, the application of sections 400 to 400C is subject to section 112 of FA 2012.