94 Indexed gilt-edged securities.U.K.
[F1[F2(1)In the case of a loan relationship represented by an index-linked gilt-edged security—
(a)the amounts to be brought into account for the purposes of this Chapter must be determined using fair value accounting, and
(b)the following adjustment shall be made in computing those amounts.
(2)The adjustment shall be made wherever—
(a)those amounts fall to be determined by reference to the value of the security at two different times, and
(b)there is a change in the retail prices index between those times.
(3)The adjustment is made to the carrying value of the security at the earlier time and is to increase or, as the case may be, reduce it by the same percentage as the percentage increase or reduction in the retail prices index between the earlier and the later time.]
(4)The Treasury may, in relation to any description of index-linked gilt-edged securities, by order provide that—
(a)there are to be no adjustments under this section; or
(b)that an adjustment specified in the order (instead of the adjustment specified in subsection (3) above) is to be the adjustment for which this section provides.
(5)An order under subsection (4) above—
(a)shall not have effect in relation to any gilt-edged security issued before the making of the order; but
(b)may make different provision for different descriptions of securities.
(6)For the purposes of this section the percentage increase or reduction in the retail prices index between any two times shall be determined by reference to the difference between—
(a)that index for the month in which the earlier time falls; and
(b)that index for the month in which the later time falls
[F3except that where the earlier time falls at the beginning of an accounting period which begins with the first day of a month, the index for the previous month shall be used for the purposes of paragraph (a) above.]
(7)In this section “index-linked gilt-edged securities” means any gilt-edged securities the amounts of the payments under which are determined wholly or partly by reference to the retail prices index.]
Textual Amendments
F1S. 94 repealed (with effect in accordance with s. 52(3) of the amending Act) by Finance Act 2004 (c. 12), Sch. 10 para. 12, Sch. 42 Pt. 2(6)
F2S. 94(1)-(3) substituted for s. 94(1)-(3A) (7.4.2005) by Finance Act 2005 (c. 7), Sch. 4 para. 27(3)
F3Words in s. 94(6) inserted (24.7.2002 with effect as mentioned in s. 82(2) of the amending Act) by Finance Act 2002 (c. 23), s. 82(1), Sch. 25 Pt. 1 para. 12(3)
Modifications etc. (not altering text)
C1Pt. 4 Ch. 2 modified (with effect in accordance with s. 56(1)-(3)(5) of the amending Act) by Finance Act 2005 (c. 7), s. 56(4)(b)
C2Pt. 4 Ch. 2 modified (with effect in accordance with s. 56 of the amending Act) by Finance Act 2005 (c. 7), s. 50
C3S. 94 restored (7.4.2005) by Finance Act 2005 (c. 7), Sch. 4 para. 27(1)