Beta This part of GOV.UK is being rebuilt – find out what this means

HMRC internal manual

Corporate Finance Manual

From
HM Revenue & Customs
Updated
, see all updates

Loan relationships: tax avoidance: commencement

Commencement

CFM39210 to CFM39230 explain that for periods of account beginning on or after 6 December 2010, the derecognition anti-avoidance legislation operates as a general rule, wherever an amount is not fully recognised, as a result of the company being party to tax avoidance arrangements.

Periods straddling this date are treated as two separate periods of account, so in effect the new rules apply to credits and debits relating to amounts not fully recognised on or after 6 December 2010.

However, CTA09/S312(3)(a) (the rule that denies debits where amounts are required to be fully recognised) only has effect in relation to avoidance arrangements to which the company became party on or after 23 March 2011.

See CFM33120 and CFM33122 for periods beginning before 6 December 2010.