Corporation Tax Act 2009 section 98

References to Companies Act 2006

Section 98 provides a transitional rule ensuring that references to the Companies Act 2006 rule against a company acquiring its own shares work correctly before that rule formally comes into force.

• Sections 674(3)(g)(ii) and 682(6)(b) of the Corporation Tax Act 2009 refer to section 658 of the Companies Act 2006, which prohibits a limited company from acquiring its own shares.
• Section 658 of the Companies Act 2006 replaced section 143 of the Companies Act 1985, but there was a period before the new provision formally came into force.
• During that interim period, the references to section 658 in the Corporation Tax Act 2009 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 tax rules continue to operate correctly by reference to the equivalent, still-active Companies Act provision.