[F1Meaning of “matched”U.K.
Textual Amendments
F1S. 475B and cross-heading inserted (with effect in accordance with Sch. 7 para. 12 of the amending Act) by Finance Act 2016 (c. 24), Sch. 7 para. 10
475BMeaning of “matched”U.K.
(1)This section applies for the purposes of this Part.
(2)A loan relationship of a company is matched if and to the extent that—
(a)it is in a matching relationship with another loan relationship or a derivative contract of the company, or
(b)exchange gains or losses arising in relation to an asset or liability representing the loan relationship are excluded from being brought into account under regulations under section 328(4),
and “unmatched” is to be construed accordingly.
(3)A loan relationship is in a matching relationship with another loan relationship or derivative contract if one is intended by the company to act to eliminate or substantially reduce the economic risk of the other.
(4)In this section “economic risk” means a risk which can be attributed to fluctuations in exchange rates between currencies over a period of time.
(5)In this section “derivative contract” has the same meaning as in Part 7 (see section 576).]