Finance Act 2003

Exchange gains and losses

11(1)Section 730A of the Taxes Act 1988 (treatment of price differential on sale and repurchase of securities) is amended as follows.

(2)In subsection (4) (adjustment of repurchase price), for “this section and sections 737A and 737C” substitute “the excepted provisions specified in subsection (4A) below”.

(3)At the end of that subsection add as a second sentence—

This subsection is subject to subsection (4B) below..

(4)After that subsection insert—

(4A)The excepted provisions are—

(a)this section,

(b)section 730BB, apart from subsection (7),

(c)section 737A, and

(d)section 737C.

(4B)Where section 730BB(7) has effect (repurchase price to be treated as increased or reduced for certain purposes), subsection (4) above does not have effect for any purpose other than that of determining the amount that falls to be increased or reduced under section 730BB(7)..