Loan relationships – Anti Avoidance
HMRC have published a technical note with their proposals for further changes to amend Sections 311 and 312, and Sections 599A and 599B, of the Corporation Tax Act 2009. HMRC intends to introduce generic legislation to tackle avoidance schemes involving derecognition of loan relationships and derivative contracts.
The publication of this technical note follows on from changes to the corporation tax anti-avoidance rules for large companies involving derecognition of income from loan relationships and derivative contracts for credits and debits arising on or after Budget Day, 22 June 2010.
HMRC have also set out draft legislation as part of the technical note. Depending on the responses received to the proposals, an announcement may be made later in 2010 that the draft legislation will be included in Finance Bill 2011, with effect from the date of that announcement.
Comments on the draft legislation contained in the technical note should be emailed to HMRC by 17 September 2010.