SCHEDULE 17Exchange gains and losses: chargeable gains
Currency
2
(1)
In a case where—
(a)
there is for the purposes of the 1992 Act a disposal of currency other than sterling by a qualifying company, and
(b)
immediately before the disposal the company did not hold the currency in exempt circumstances (within the meaning given by paragraph 3 below),
for the purposes of that Act no chargeable gain or allowable loss shall accrue on the disposal.
(2)
This paragraph applies to disposals on or after the company’s commencement day.
3
(1)
For the purposes of paragraph 2 above a company holds currency in exempt circumstances at a given time if—
(a)
the purposes for which it then holds the currency are or include any of the purposes mentioned in sub-paragraph (2) below,
(b)
it is a housing association approved at that time for the purposes of section 488 of the Taxes Act 1988, or
(c)
it is a self-build society approved at that time for the purposes of section 489 of that Act.
(2)
The purposes referred to in sub-paragraph (1)(a) above are—
(a)
the purposes of long term insurance business;
(b)
the purposes of mutual insurance business;
(c)
the purposes of the occupation of commercial woodlands.
(3)
In this paragraph—
“long term insurance business” means insurance business of any of the classes specified in Schedule 1 to the M1Insurance Companies Act 1982;
“commercial woodlands” means woodlands in the United Kingdom which are managed on a commercial basis and with a view to the realisation of profits.