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Amendment of section 81 (general rule as to deductions) of Principal Act.
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37.— (1) Section 81 of the Principal Act is amended in subsection (2)(n)—
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(a) in subparagraph (i) by deleting “or” and in subparagraph (ii) by substituting “length, or” for “length.”, and
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(b) by inserting the following after subparagraph (ii):
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“(iii) of other—
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(I) expenditure incurred, or
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(II) payment made to the connected company,
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by the company in connection with the right to receive such shares which is incurred or, as the case may be, made for bona fide commercial purposes and does not form part of any scheme or arrangement of which the main purpose or one of the main purposes is the avoidance of liability to income tax, corporation tax or capital gains tax.”.
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(2) This section applies as respects accounting periods ending on or after 1 February 2007.
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