7(1)Part 5 of CTA 2009 (loan relationships) is amended as follows.U.K.
(2)In section 398 (overview of Chapter 12), in subsection (2)—
(a)omit the “and” at the end of paragraph (d), and
(b)after paragraph (e) insert “, and
(f)section 420A (hybrid capital instruments).”
(3)In section 465(3) (provisions preventing amounts from being distributions), before paragraph (za) insert—
“(zza)section 420A(2) (hybrid capital instruments),”.
8(1)Part 10 of TIOPA 2010 (corporate interest restriction) is amended as follows.U.K.
(2)In section 413(6) (adjusted net group-interest expense: “relevant enactment”) for paragraph (b) substitute—
“(b)section 320B of CTA 2009 (hybrid capital instruments: amounts recognised in equity).”
(3)In section 415 (qualifying net group-interest expense: interpretation), omit subsection (8).
9(1)The Loan Relationships and Derivative Contracts (Disregard and Bringing into Account of Profits and Losses) Regulations 2004 (S.I. 2004/3256) are amended in accordance with this paragraph.U.K.
(2)In regulation 2(1) (interpretation)—
(a)after the definition of “fair value profit or loss” insert—
““hybrid capital instrument” has the meaning given by section 475C of CTA 2009;”, and
(b)omit the definition of “regulatory capital security”.
(3)In regulation 3 (exchange gains or losses arising from liabilities or assets hedging shares etc), in paragraph (5)(c), for “a regulatory capital security” substitute “ a hybrid capital instrument ”.
(4)In regulation 4 (exchange gains or losses arising from derivative contracts hedging shares etc), in paragraph (4A)(c), for “a regulatory capital security” substitute “ a hybrid capital instrument ”.