Corporation Tax Act 2009 section 72

Relevant non-lending relationships: discounts accruing and profits arising before 16 March 2005

Section 72 ensures that certain credits and debits relating to discounts on money debts and profits from relevant non-lending relationships are excluded from the loan relationships rules where they accrued or arose before 16 March 2005.

• Credits for discounts on money debts are excluded to the extent the discount accrued before 16 March 2005.
• Credits for profits from related transactions that took place before 16 March 2005 are similarly excluded.
• Debits for impairment losses on such discounts, and credits for reversals of those impairments, are excluded to the extent the underlying discount accrued before that date.
• The exclusion applies specifically to amounts that would otherwise be brought into account under the provisions dealing with relevant non-lending relationships involving discounts (sections 480, 481 and 482).