Corporation Tax Act 2009 section 464

Priority of this Part for corporation tax purposes

Section 464 establishes that the loan relationships rules take priority over other corporation tax rules when calculating amounts relating to loan relationships.

• Where a matter falls within the loan relationships rules (Part 5), only the amounts calculated under those rules may be used for corporation tax purposes — no other tax rules can produce a different figure for the same item
• This priority rule can be overridden where there is an express provision to the contrary elsewhere in tax legislation
• Several specific provisions modify or disapply this priority rule, including rules on distributions, derivative contracts, oil activities, double taxation relief, foreign tax deductions, and the taxation of receipts for banks in compulsory liquidation
• Certain amounts that are blocked from being brought into account under the loan relationships rules — such as imported losses, amounts relating to unallowable purposes, and debits from derecognition of creditor relationships — are nonetheless treated as if they had been brought into account, so the priority rule still prevents them from being taxed under any other rules