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Amendments made: No. 61, in page 156, line 7, at end insert—
'Section 109 of the Taxes Management Act 1970
5A.—(1) Section 109 of the Taxes Management Act 1970 (corporation tax on close company in connection with loans to participators etc) shall be amended as follows.
(2) In subsection (3A) (interest under section 87A on so much of tax under section 419 of Taxes Act 1988 as is referable to amount of loan or advance repaid shall not be payable in respect of any period after repayment made)—
(a) after "If' there shall be inserted "(a)";
(b) after "principal Act," there shall be inserted "or
(b) there is such a release or writing off of the whole or any part of the debt in respect of a loan or advance as is referred to in that subsection,";
(c) after "amount repaid" there shall be inserted ", released or written off"; and
(d) after "the repayment was made" there shall be inserted "or the release or writing off occurred".
(3) This paragraph has effect in relation to the release or writing off of the whole or part of a debt on or after 6th April 1999.'.
§ No. 62, in page 160, line 13, leave out second 'and'.
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No. 63, in page 160, line 16, at end insert
'and
(c) after "the repayment is made" there shall be inserted "or the release or writing off occurs".'.
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No. 64, in page 160, line 17, leave out from '(4))' to 'there' in line 18 and insert—
'(a) after "Where" there shall be inserted "(a)";
(b) after "that loan or advance," there shall be inserted "or
(b) the release or writing off of the whole or any part of the debt in respect of a loan or advance occurs on or after the day on which tax by virtue of this section becomes due in relation to that loan or advance,"; and
(c) after "repayment", in the second and third places where it occurs,'.—[Mr. Geoffrey Robinson.]