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(iii) any charges on income which under section 243(2) are to be allowed as deductions against the total profits for any accounting period in the specified period,

(b) in the case of a company, sections 243, 308(4) and 396(2) and subsections (1), (2) and (6) of section 420.

(2) Notwithstanding section 243, relevant trading charges on income paid by a company in an accounting period shall not be allowed as deductions against the total profits of the company for the accounting period.

and such other company (in this subsection and subsection (4D) referred to as the “other company”) uses those subscriptions or moneys to provide specified intangible assets (within the meaning of section 291A) in respect of which allowances are to be made to it under section 284 as applied by section 291A, then, notwithstanding subsection (3) and section 243, the amount of the relief to be given in respect of so much (in this subsection and subsections (4C) and (4D) referred to as the “relevant interest”) of the interest paid in an accounting period by the investing company on the loan, or the part of the loan, as the case may be, as exceeds the sum of—

(c) (i) Where, in an accounting period, interest is paid by an investing company on a loan to defray money applied in lending to another company (in this paragraph referred to as the “other company”) money which is used wholly and exclusively for the purposes of acquiring a trade (in this subsection referred to as an “acquired trade”) which immediately before its acquisition by the other company was carried on by a company which was not within the charge to corporation tax, then paragraph (b) shall not apply to that loan and, notwithstanding subsection (3) and section 243, the amount of the relief to be given in respect of the interest paid in an accounting period by the investing company on the loan shall not exceed the amount of the profits or gains of the other company in respect of the acquired trade for the corresponding period.

(d) (i) Where, in an accounting period, interest is paid by an investing company on a loan to defray money applied in lending to another company (in this paragraph referred to as the “other company”) money which is used wholly and exclusively for the purposes of acquiring an asset (in this paragraph referred to as an “acquired asset”) which is leased by the other company for that accounting period in the course of a trade (in this paragraph referred to as the “first-mentioned trade”) then, if immediately before that asset was acquired by the other company it was not in use for the purposes of a trade carried on by a company which was within the charge to corporation tax, paragraph (b) shall not apply to that loan and, notwithstanding subsection (3) and section 243, the amount of the relief to be given in respect of the interest paid in the accounting period by the investing company on the loan shall not exceed the amount of the profits or gains of the first-mentioned trade for the corresponding period as is attributable to the acquired asset.

(b) Where a loan to an investing company, to which subsection (2) applies, has been applied in lending to another company (in this paragraph referred to as the “other company”) not within the charge to corporation tax money which is used wholly and exclusively for the purposes of the trade or business of the other company then, notwithstanding subsection (3) and section 243, the amount of the relief to be given in respect of so much of the interest paid (referred to in this paragraph as the “interest paid”) in an accounting period by the investing company on the loan, as exceeds the amount (including a nil amount) of any interest, arising to the investing company on the money lent to the other company, for the relevant period, shall not exceed the amount by which the interest paid exceeds the interest (if any) arising to the other company in that relevant period in respect of the money so used.

(c) Where a loan to an investing company, to which subsection (2) applies, has been applied in lending to another company (in this paragraph referred to as the “other company”) money which is used wholly and exclusively for the purposes of the trade or business of a connected company not within the charge to corporation tax then, notwithstanding subsection (3) and section 243—

“charges on income” has the same meaning as in section 243;

(3) Subsections (5) to (8) of section 396 shall apply for the purposes of this section as they apply for the purposes of section 396(1), and relief shall not be given under this section in respect of a loss incurred in a trade so as to interfere with any relief under section 243 section 243 or 243A in respect of payments made wholly and exclusively for the purposes of that trade.

“charges on income” has the meaning assigned to it by section 243(1);

(a) for the purposes of corporation tax, are charges on income of the company making them or would be so if they were not deductible in computing profits or any description of profits or if section 243(7) did not apply to them, and

(2) Group relief in accordance with section 420 for an accounting period shall be allowed as a deduction against the claimant company’s total profits for the period before reduction by any relief derived from a subsequent accounting period, but as reduced by any other relief from tax (including relief in respect of charges on income under section 243(2)).

(i) the company’s share in the loss of the relevant accounting period of the partnership and its share in any charges on income (within the meaning of section 243) paid by the partnership in that accounting period shall not be available for set-off for the purposes of corporation tax except against its profits of the several trade,

“relevant charges”, in relation to an accounting period of a company, means charges on income paid in the accounting period by the company and which are allowed as deductions under section 243, other than so much of those charges as is paid for the purposes of an excepted trade within the meaning of section 21A;

(c) The annual payment referred to in paragraph (a) shall not be a charge on the company’s income within the meaning of section 243.

(c) did not pay charges on income within the meaning of section 243.

(3) Notwithstanding section 243—

(6) In any case where for an accounting period of a company charges on income paid by the company are allowable under section 243—

(b) the amount of that excess is greater than the amount, if any, by which the total of the charges on income which, subject to subsection (3), are allowable to the company under section 243 exceeds the total of the company’s profits,

(2) In computing the corporation tax payable for any accounting period of a society, section 243 shall apply subject to the deletion of “yearly” in subsection (4)(a) of that section.

and, if such a return is not fully made as respects any year of assessment, the society shall not be entitled to any deduction under section 97(2)(e), 243 or 699(1) in respect of any payments of share interest or loan interest which it was required to include in the return, and all such assessments and additional assessments shall be made as may be necessary and assessments shall, as necessary, be made or amended to give effect to this subsection.

(b) shall be excluded from the definition of “charges on income” in section 243.

(iii) did not pay charges on income within the meaning of section 243.