1Chapter II of Part II of the M1Finance Act 1993 (exchange gains and losses) shall be deemed to have been enacted with the modifications set out in paragraphs 2 to 6 below.
Marginal Citations
2In section 128 (trading gains and losses) the following subsections shall be inserted after subsection (10)—
“(10A)In a case where—
(a)an exchange gain of a trade or part of a trade or an exchange loss of a trade or part of a trade would (apart from this subsection) accrue to a company as regards a liability consisting of a duty to settle under a qualifying debt, and
(b)a charge is allowed to the company in respect of the debt under section 338 of the Taxes Act 1988 (allowance of charges on income and capital),
the exchange gain or loss shall be treated as not accruing.
(10B)A charge shall be treated as allowed as mentioned in subsection (10A) above if—
(a)it would be so allowed if the company’s total profits were sufficient,
(b)it would be so allowed if the duty mentioned in that subsection were settled, and if in settling it payment were made out of the company’s profits brought into charge to corporation tax, or
(c)it would be so allowed if the facts were as mentioned in both paragraph (a) and paragraph (b) above.”
3(1)Section 129 (non-trading gains and losses) shall be amended as follows.
(2)In subsection (8) (no non-trading exchange gain or loss where a charge is allowed) in paragraph (b) the words “or the circumstances are such that a charge would be so allowed if the duty were settled” shall be omitted.
(3)The following subsection shall be inserted after subsection (8)—
“(8A)A charge shall be treated as allowed as mentioned in subsection (8) above if—
(a)it would be so allowed if the company’s total profits were sufficient,
(b)it would be so allowed if the duty mentioned in that subsection were settled, and if in settling it payment were made out of the company’s profits brought into charge to corporation tax, or
(c)it would be so allowed if the facts were as mentioned in both paragraph (a) and paragraph (b) above.”
F14U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Textual Amendments
F1Sch. 24 para. 4 repealed (29.4.1996 with effect as mentioned in ss. 80-105 of the amending Act) by 1996 c. 8, s. 205, Sch. 41 Pt. V(3) Note
F25U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Textual Amendments
F2Sch. 24 para. 5 repealed (29.4.1996 with effect as mentioned in ss. 80-105 of the amending Act) by 1996 c. 8, s. 205, Sch. 41 Pt. V(3) Note
F36U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Textual Amendments
F3Sch. 24 para. 6 repealed (29.4.1996 with effect as mentioned in ss. 80-105 of the amending Act) by 1996 c. 8, s. 205, Sch. 41 Pt. V(3) Note