SCHEDULES
SCHEDULE 6Accounting practice and related matters
Loan relationships with embedded derivatives
8
1
In section 116(8A) of TCGA 1992 (reorganisations, conversions and reconstructions: application of loan relationships regime in certain cases)—
a
after “shall have effect” insert “
, subject to subsection (8B) below,
”
, and
b
for “that subsection” substitute “
subsection (6) above
”
.
2
After that subsection insert—
8B
Subsection (8A) above does not apply where the relevant transaction is a conversion of securities occurring in consequence of the operation of the terms of any security or of any debenture which is not a security.
Expressions used in this subsection have the same meaning as they have for the purposes of section 132.
3
These amendments have effect in relation to transactions occurring after 26th May 2005.