The Taxation of Hybrid Capital Instruments (Amendment of Section 475C of the Corporation Tax Act 2009) Regulations 2019

• Citation: S.I. 2019/1250
• Sections: 3

Section 1 Citation, commencement and effect

(1) These Regulations may be cited as the Taxation of Hybrid Capital Instruments (Amendment of Section 475C of the Corporation Tax Act 2009) Regulations 2019 and come into force on 4th November 2019.

(2) Schedule 20 to the Finance Act 2019 has effect, and is to be deemed always to have had effect, with the amendments made to section 475C by these Regulations.

Section 2 Amendment of the Corporation Tax Act 2009

(1) In section 475C(5) of the Corporation Tax Act 2009 (hybrid capital instruments: meaning of “conversion event”)—

(a) in paragraph (b), for “the debtor’s quoted parent company” substitute “a company (“C”) which, after the conversion, has control of the debtor or would have control of the debtor if C were taken to have all the rights and interests in the debtor of any company connected with C”, and

(b) omit the sentence following that paragraph.

(2) Where a loan relationship meets the conditions in section 475C(1)(a) and (b) by virtue of the amendments made by this regulation, section 475C(8)(b) has effect as if the election were required to be made before the end of the period of 6 months beginning with the day on which these Regulations come into force.

Section 3 Amendment of the Corporation Tax Act 2009

In section 475C(8) of the Corporation Tax Act 2009 (hybrid capital instruments: provisions relating to elections), for paragraphs (b) and (c) substitute—

(b) must be made before the end of the period of 6 months beginning with—

(i) the day on which the company becomes a party to the loan relationship, or

(ii) if (after becoming a party to the loan relationship) the loan relationship is amended so as to meet the conditions in subsection (1)(a) and (b), the first day of the company’s next accounting period, and

(c) has effect for the accounting period in which the day mentioned in paragraph (b)(i) or (ii) falls and for subsequent accounting periods.