12(1)Subject to sub-paragraph (2) below, the notional closing value as at 31st March 1996 of any relevant asset representing a loan relationship of a company, or of any relevant liability, shall be taken for the purposes of paragraphs 5 and 11 above, to be an amount equal to the following amount, that is to say—U.K.
(a)in the case of a chargeable asset, its market value on that date;
(b)in the case of a relevant qualifying asset or relevant liability, the value given to it as at the company’s commencement day for the purpose of computing any attributed amount.
(2)Sub-paragraph (3) below applies where a company, by notice in writing given on or before 30th September 1996 to an officer of the Board, [F1made] an election for the purposes of that sub-paragraph in relation to all of its relevant qualifying assets which—
(a)apart from the election, would be given a notional closing value as at 31st March 1996 by sub-paragraph (1) above; and
(b)but for Chapter II of Part II of the M1Finance Act 1993 (exchange gains and losses), would be chargeable assets.
(3)Where such an election [F2was made] as respects those assets—
(a)sub-paragraph (1) above shall not apply as respects those assets; but
(b)the value of each of those assets as at 1st April 1996 shall be taken for the purposes of this Chapter [F3and Part 5 of the Corporation Tax Act 2009] to be its market value on that date.
(4)In this paragraph “chargeable asset” and “relevant asset” have the same meanings as in paragraph 11 above; and expressions used in this paragraph and paragraph 5 above have the same meanings in this paragraph as in that paragraph.
Textual Amendments
F1Word in Sch. 15 para. 12(2) substituted (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 1 para. 444(9)(a) (with Sch. 2 paras. 1-10, 54)
F2Words in Sch. 15 para. 12(3) substituted (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 1 para. 444(9)(b)(i) (with Sch. 2 paras. 1-10, 54)
F3Words in Sch. 15 para. 12(3) inserted (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 1 para. 444(9)(b)(ii) (with Sch. 2 paras. 1-10, 54)
Marginal Citations