Valid from 03/05/1994
160 Non-trading profits and losses.U.K.
(1)In a case where—
(a)as regards a qualifying contract a profit or loss accrues to a qualifying company for an accounting period, and
(b)the whole or part of the profit or loss does not fall to be treated for the purposes of the Tax Acts as a profit or loss of a trade or part of a trade for the period,
the whole or part (as the case may be) shall be treated for the purposes of this section as a non-trading profit or loss of the company for the period.
(2)Subsections (5), (6) and (9) of section 129 and sections 130 to 133 of the M1Finance Act 1993 (non-trading exchange gains and losses) shall have effect as if—
(a)any reference to an amount which a company is treated as receiving in an accounting period by virtue of section 129 included a reference to an amount equal to any non-trading profit of the company for the period, and
(b)any reference to a loss which a company is treated as incurring in an accounting period by virtue of that section included a reference to an amount equal to any non-trading loss of the company for the period;
and (unless the contrary intention appears) any reference in the following provisions of this Chapter to any of those provisions of that Act is a reference to that provision so far as it has effect in relation to such non-trading profits or losses.
(3)For the purposes of subsection (2) above, any reference in the provisions there mentioned which falls to be construed as a reference to a qualifying company for the purposes of Chapter II of Part II of the M2Finance Act 1993 (exchange gains and losses) shall be construed as including a reference to a qualifying company for the purposes of this Chapter.
(4)Case VI of Schedule D shall for the purposes of corporation tax extend to companies not resident in the United Kingdom, so far as those companies are chargeable to tax on profits which, in the case of companies resident in the United Kingdom, fall within that Case by virtue of section 130 of the M3Finance Act 1993.