Corporation Tax Act 2009 section 70

References to Companies Act 2006

Section 70 provides a transitional rule so that references to the Companies Act 2006 rule against a limited company acquiring its own shares are read as references to the equivalent earlier legislation until the new provision comes into force.

• The Companies Act 2006 introduced a new section 658 dealing with the rule against a limited company acquiring its own shares, replacing section 143 of the Companies Act 1985.
• Sections 421(4)(g)(ii) and 431(7)(b) of the Corporation Tax Act 2009 refer to section 658 of the Companies Act 2006.
• Until section 658 actually comes into force, those references are to be read as if they referred instead to section 143 of the Companies Act 1985.
• This ensures there is no gap in the legislation and that the corporation tax rules continue to operate correctly during the transition between the two Companies Acts.