Section 521A — Corporation Tax Act 2009: Introduction to Chapter

Introduction to Chapter 521A 1 This Chapter contains rules for Part 5 (and the other provisions of the Corporation Tax Acts) to apply in some cases as if at some times in the accounting period of a company (“A”) which holds shares of a certain kind in another company (“B”) the shares were rights under a creditor relationship of A.

2 See, in particular—

a section 521B (application of Part 5 to some shares as rights under creditor relationship),

and b section 521C (which describes the shares to which the rules apply).

3 In this Chapter references to the investing company are to A and references to the issuing company are to B.

4 For the purposes of this Chapter, the definition of “share” in section 476(1) only applies so far as it provides that “ share ” does not include a share in a building society.

5 Section 550(3) (repos: ignoring effect on borrower of sale of securities) does not apply for the purposes of this Chapter.

6 See section 116B of TCGA 1992 for the effect for chargeable gains purposes of shares beginning or ceasing to be shares to which section 521C applies.