SCHEDULES

Valid from 24/07/2002

SCHEDULE 23 U.K. Exchange gains and losses from loan relationships etc

Part 2 U.K. Amendments of other legislation

The Income and Corporation Taxes Act 1988 U.K.

Supplementary charge in respect of ring fence trades U.K.

18 (1) In section 501A of the Taxes Act 1988, subsection (5) (computation of financing costs) is amended as follows.

(2) In paragraph (a) (costs giving rise to debits in respect of debtor relationships) after “(loan relationships)” insert “ , other than debits in respect of exchange losses from such relationships (see section 103(1A) and (1B) of that Act) ”.

(3) For paragraph (b) (exchange gain or loss, within the meaning of Chapter 2 of Part 2 of the Finance Act 1993 (c. 34), in relation to debt finance) substitute—

“(b) any exchange gain or loss from a debtor relationship, within the meaning of that Chapter (see section 103(1A) and (1B) of that Act), in relation to debt finance;”.