The Finance Act 2002, Schedule 26 (Parts 2 and 9) (Amendment No. 3) Order 2005

Amendment of Part 2 of Schedule 26

6.—(1) Amend paragraph 12 (definition of terms relating to derivative contracts) as follows.

(2) In sub-paragraph (1)(1)—

(a) after paragraph (b) insert—

“(bza) a contract of long-term insurance (see sub-paragraph (16));”

(b) in paragraph (cc)—

(i) before “hedging” insert “a”; and

(ii) after “an asset” insert “or a liability”; and

(3) In sub-paragraph (14)—

(a) in the words before paragraph (a) after “an asset” insert “or a liability”;

(b) in paragraph (b) after “asset”, in both places, insert “or liability”; and

(c) after paragraph (b) add—

“For the purposes of this sub-paragraph the liabilities of a company include its own share capital.”.

(4) In sub-paragraph (16), for “has” substitute “and “contract of long-term insurance” have”.

(1)

Sub-paragraph (1) was substituted by article 13 of S.I. 2004/2201 and has been amended. The relevant amendments are those made by article 9 of S.I. 2005/646 and article 8 of S.I. 2005/2082/