What does section 53 of the Corporation Tax Act 2009 do?

Section 53 is an interpretation provision that ensures terminology used in this part of Schedule 2 carries the same meaning as in Part 5 of the Corporation Tax Act 2009, which governs loan relationships. This guarantees consistency between the transitional provisions and the substantive loan relationships rules throughout the legislation.

How do defined terms in Schedule 2 relate to Part 5 of the Corporation Tax Act 2009?

Defined terms in this part of Schedule 2 share the same definitions as those in Part 5 of the Act. This means where a word or phrase appears in both Schedule 2 and Part 5, it has the same meaning in both places, ensuring the transitional provisions operate seamlessly alongside the main loan relationships rules.

Are there any exceptions to the shared meaning of terms under section 53?

Yes. The only exception is where this part of Schedule 2 itself provides a different definition or meaning for a particular term. In such cases, the specific meaning given in the Schedule takes precedence over the Part 5 definition, but only within the context of these transitional provisions.

Why is section 53 important for companies reviewing transitional provisions?

Section 53 is important because it directs companies to Part 5 of the Corporation Tax Act 2009 for authoritative definitions of technical terms encountered in the transitional provisions. This prevents misinterpretation and ensures that terms like 'loan relationship' are applied consistently across both the Schedule and the main Act.

Corporation Tax Act 2009 section 53

Interpretation

Section 53 establishes that terminology used in this part of Schedule 2 carries the same meaning as in Part 5 of the Corporation Tax Act 2009, unless explicitly stated otherwise.

Terms and expressions in this part of Schedule 2 share the same definitions as those in Part 5 of the Act.
This ensures consistency of interpretation between the transitional provisions and the main loan relationships legislation.
Any departure from the shared meaning must be explicitly stated within this part of the Schedule.
Accountants should refer to Part 5 of the Act for the authoritative definitions of any technical terms encountered in these transitional provisions.

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