Corporation Tax Act 2009 (c. 4)

Part 5 U.K. Loan Relationships

Modifications etc. (not altering text)

C1 Pt. 5 applied (with effect in accordance with Sch. 24 paras. 13-16 of the amending Act) by Finance Act 2009 (c. 10), Sch. 24 para. 15(2)(3)

Chapter 3 U.K. The credits and debits to be brought into account: general

Exchange gains and losses U.K.

[F1 328A Arrangements that have a “one-way exchange effect” U.K.

(1) For the purposes of section 328 arrangements (“the arrangements”) have a “ one-way exchange effect ” in relation to a company (“company A”) in an accounting period of that company (“ the relevant accounting period ”) if the following two conditions are met.

(2) The first condition is that the arrangements include an option or a relevant contingent contract.

(3) The second condition is that, in relation to any day in the relevant accounting period (“the test day”)—

(a) amount A is not equal to amount B, and

(b) the difference between amounts A and B is not the same as it would be were those amounts calculated disregarding the matching rules.

(4) Amount A is—

(a) the sum of the relevant exchange losses of company A, and of each company connected with company A, that arise in accounting periods of those companies that end on the test day, less

(b) the sum of the relevant exchange gains of those companies that arise in such accounting periods.

(5) Amount B is—

(a) the sum of the relevant exchange gains of company A, and of each company connected with company A, that would have arisen in accounting periods of those companies that end on the test day, less

(b) the sum of the relevant exchange losses of those companies that would have arisen in such accounting periods,

if exchange gains and losses of those companies in those accounting periods were calculated in accordance with section 328D (counterfactual currency movement assumptions).

(6) For the purposes of subsections (4) and (5) an accounting period of company A, or of a company connected with company A, in which the test day falls and that does not end on that day is to be treated as if it did end on that day.

(7) In this section “ the matching rules ” means—

(a) section 328(3) and (4), and

(b) section 606(3) and (4).]

Textual Amendments

F1 Ss. 328A-328H inserted (with effect in accordance with Sch. 21 para. 11 of the amending Act) by Finance Act 2009 (c. 10), Sch. 21 para. 3