Finance Act 1998

109 Abolition of requirements for direction. U.K.

(1) The following provisions of Chapter II of Part II of the M1 Finance Act 1993 (exchange gains and losses) shall cease to have effect—

(a) in section 135(1), paragraph (d) (which makes the giving of a direction a condition of disregarding an exchange loss where it is the main benefit), and the word “and" immediately preceding that paragraph;

(b) in section 136, the following provisions (which make the giving of a direction by the Board a condition of disregarding or reducing an exchange loss where there is a transaction that is not on arm’s length terms)—

(i) paragraph (d) of subsection (1) and the word “and" immediately preceding that paragraph; and

(ii) in each of subsections (5) and (9), the words after paragraph (b);

(c) in each of subsections (3) and (7) of section 136A, the words after paragraph (b) (which make the giving of a direction by the Board a condition of reducing an initial exchange loss where there is a transaction that is not on arm’s length terms); and

(d) in section 137(1), paragraph (d) (which makes the giving of a direction a condition of disregarding an exchange loss on a currency contract which is not on arm’s length terms), and the word “and" immediately preceding that paragraph.

(2) Accordingly, the word “and” shall be inserted—

(a) at the end of section 135(1)(b) of the M2 Finance Act 1993;

(b) at the end of section 136(1)(b) of that Act; and

(c) at the end of section 137(1)(b) of that Act.

(3) In section 167(2) of the M3 Finance Act 1994, paragraph (b) (which makes the giving of a direction by the Board a condition of adjusting the amounts brought into account in respect of a relevant transaction which is not on arm’s length terms), and the word “and" immediately preceding that paragraph, shall cease to have effect.

(4) The preceding provisions of this section shall have effect (in relation to transactions entered into at any time) as respects accounting periods ending on or after the day appointed under section 199 of the M4 Finance Act 1994 for the purposes of Chapter III of Part IV of that Act (self-assessment management provisions).

(5) Where a direction given on or after 17th March 1998 under—

(a) section 135(1)(d), 136(1)(d), (5) or (9), 136A(3) or (7) or 137(1)(d) of the M5 Finance Act 1993, or

(b) section 167(2)(b) of the M6 Finance Act 1994,

relates to any accounting period ending before the day appointed as mentioned in subsection (4) above, all such adjustments shall be made, whether by assessment, repayment of tax or otherwise, as are necessary to give effect to that direction.

Marginal Citations

M1 1993 c. 34.

M2 1993 c. 34.

M3 1994 c. 9.

M4 1994 c. 9.

M5 1993 c. 34.

M6 1994 c. 9.