CFM5003 - Taxing loan relationships: introduction: guidance

Using the guidance and legislation

Old guidance

If you are looking at an accounting period that ends before 26 July 2001, consult the old guidance. You'll find this in Volume 5 of the Corporation Tax Manual, at CT12000+.

Anti-avoidance guidance

If you are looking at an accounting period that ends after 25 July 2001 you may need to consult both the old guidance and the current guidance. This is because the new anti-avoidance provisions, covering

came into force when they were announced on

  • 26 July 2001,
  • 19 December 2001, or
  • 24 April 2002, respectively.

Current guidance

Use the current guidance where the company's accounting period begins on or after 1 October 2002. FA 2002 introduced many changes to FA 1996, which are now covered by this Corporate Finance Manual.

FA 2004 introduced further changes to FA 1996 and guidance on these is also covered by this Corporate Finance Manual. The FA 2004 changes apply for periods of account starting on or after 1 January 2005. In some cases the guidance on the FA 2004 changes appears alongside the guidance on the FA 2002 changes. In other cases it appears in a separate block. Notes at the top of the screen and paragraph headings within the body of the material direct you to the guidance that applies to the accounting periods you are considering.

If a company tries to delay a move to loan relationships from the FOREX legislation by shortening an accounting period, the new legislation, so far as it applies to exchange gains and losses, applies from the start of the accounting period that includes 1 October 2002. There are details at CFM10500+.