Finance Act 2004

27 (1) Paragraph 9 (further restriction on bringing into account losses on overseas sovereign debt etc.) is amended as follows. U.K.

(2) In sub-paragraph (1) for paragraphs (a) and (b) substitute—

“(a) an impairment loss falls to be brought into account for the purposes of this Chapter in respect of a relevant overseas debt in relation to which any of the conditions in sub-paragraph (2) is met,

(b) in the accounting period in which that loss falls to be so brought into account (“the loss period”) the company ceases to be a party to the loan relationship,”.

(3) In sub-paragraph (2)—

(a) for the opening words down to “if—” substitute “ The conditions referred to in sub-paragraph (1)(a) are— ”;

(b) in paragraph (b)—

(i) after “Chapter” insert “ for a period of account of the company beginning before 1st January 2005 ”, and

(ii) for “paragraph 5(1)(a) to (c) above” substitute “ paragraph 5(1)(a) to (c) of this Schedule as it had effect before its amendment by Schedule 10 to the Finance Act 2004 ”;

(c) omit the “or” at the end of paragraph (b);

(d) after that paragraph insert—

“(ba) an impairment loss in respect of the debt has been brought into account for the purposes of this Chapter for a period of account of the company beginning on or after 1st January 2005; or”.