Part 4: Income tax, corporation tax and capital gains tax Section 32 and Schedule 7: Loan relationships and derivative contracts Details of the Schedule Part 6: Commencement and transitional provisions
Part 6, introduced by Paragraph 102, contains commencement and transitional provisions.
	Paragraph 103 sets out the general commencement rule for the amendments made by Parts 1 to 4 of the Schedule.
	Paragraph 104 excepts the provisions dealt with by paragraphs 106 to 113 from the general rule, and subjects the general commencement rule to the transitional provisions introduced by paragraphs 114 to 128.
	Paragraph 105 provides that the repeals made by Part 5 to the Schedule have effect on or after the date of Royal Assent to Finance (No.2) Act 2015.
	Paragraphs 106 to 114 set out commencement arrangements for a number of specific provisions. The corporate rescue provisions introduced by paragraphs 16 to 18 apply from 1 January 2015. Changes introduced by paragraphs 33(2) and 35 to 40 apply from the date of Royal Assent to Finance (No2) Act 2015. The substitution of existing anti-avoidance provisions by the new rules introduced by paragraphs 51 and 94, also applies to arrangements entered into on or after the date of Royal Assent to Finance (No2) Act 2015.
	Paragraphs 115 to 119 make transitional provisions concerned with the changes made to section 308 by paragraph 5. They ensure that amounts recognised in other comprehensive income and taxed or relieved in a pre-transition period will not be taxed or relieved again in a post-transition period.
	Paragraph 115 sets out, in subsection (1), the circumstances in which these transitional provisions apply. They apply where amounts were recognised in other comprehensive income and brought into account for tax in a pre-transition period. Those amounts could be brought into account again under the amended rules when subsequently transferred into profit or loss in a post-transition period (see paragraph 5) or under the new section 320A (see paragraph 15). In those circumstances, subsection (2) requires an overall transitional adjustment to be made on a just and reasonable basis.
	Paragraph 116 requires credits or debits amounting to the overall transitional adjustment to be brought into account for the relevant accounting periods. The relevant accounting periods are the first accounting period commencing on or after 1 January 2016 and each subsequent period falling wholly or partly within the subsequent five years, referred to as the transitional years. Subsections (5) to (7) specify how the overall transitional adjustment is to be allocated between the transitional years.
	Paragraph 117 excludes from the transitional arrangements any amounts brought into account in accordance with regulations made under section 151E of the Taxation of Chargeable Gains Act 1992 or section 328 CTA 2009, concerned with exchange gains and losses.
	Paragraph 118 requires any transitional adjustment under paragraphs 115 and 116 to be applied before calculating any credits or debits arising in accordance with section 316 or section 318 CTA 2009.
	Paragraph 119 provides that, where a company ceases to be within the scope of corporation tax or starts to be wound up during the five transitional years, any remaining transitional amounts are to be brought into account at that time.
	Paragraphs 120 to 124 apply to derivative contracts and mirror the provisions introduced by paragraphs 115 to 119 for loan relationships.
	Paragraph 125 requires accounting periods straddling 1 January 2016 to be split for the purposes of new subsection 328(3C), inserted by paragraph 21(4), and new subsection 606(3C), inserted by paragraph 68(4).
	Paragraph 126 is concerned with a situation where credits or debits were not brought into account in a pre-transition period in compliance with the requirements of subsection 307(3) CTA 2009, now repealed by paragraph 4(4). Subsection 307(3) requires that amounts brought into account should ‘fairly represent’ the profits, losses, interest and expenses arising from a company’s loan relationships. Where the subsection has been applied in the past, no credit or debit is to be brought into account in a post-transition period in the event of a reversal of the excluded amount.
	Paragraph 127 replicates the rule introduced by paragraph 125 in the case of derivative contracts and amounts excluded under section 595(3), now repealed by paragraph 62(4).
	Paragraph 128 is concerned with a situation where credits or debits relating to a fixed capital asset or project were brought into account in a pre-transition period in accordance with section 320 CTA 2009. In such a case, the paragraph ensures that credits and debits in respect of that asset or project will continue to be taken into account in future periods by deeming the condition in subsection 320(1)(c) to be met.
	Paragraph 129 replicates the rule introduced by paragraph 127 in the case of derivative contracts and amounts brought into account under section 604 CTA 2009.