Section 730 — Corporation Tax Act 2010: Meaning of “relevant non-trading debit”

Meaning of “relevant non-trading debit” 730 1 This section applies for the purposes of sections 679 , 696 and 705C . 2 “ Relevant non-trading debit ” means a non-trading debit within subsection (3), (4) or (5).

3 A non-trading debit is within this subsection if—

a it is determined on an amortised cost basis of accounting, b section 407 or 409 of CTA 2009 (postponement until redemption of debits for connected or close companies' deeply discounted securities) applies, and c were it not for those sections, the debit would have fallen to be brought into account for the purposes of Part 5 of that Act (loan relationships) for an accounting period ending before or with the change in ownership mentioned in section 679 , 696 or 705C .

4 A non-trading debit is within this subsection if—

a it is determined on an amortised cost basis of accounting, b section 373 of CTA 2009 (late interest treated as not accruing until paid in some cases) applies, and c were it not for that section, the debit would have fallen to be brought into account for the purposes of Part 5 of that Act for an accounting period ending before or with the change in ownership mentioned in section 679 , 696 or 705C .

5 A non-trading debit is within this subsection if—

a it is not within subsection (3) or (4),

b it is a debit in respect of a debtor relationship of the company mentioned in section 679 , 696 or 705C , c it is determined on an amortised cost basis of accounting, and d it relates to an amount that accrued before the change in ownership so mentioned.

6 Expressions used both in this section and in Part 5 of CTA 2009 (loan relationships) have the same meaning as in that Part.