9U.K.In section 120 (calculation of profits)—
(a)in paragraph (a) of subsection (4), for “an asset,” substitute “ an asset by the exploitation of which tax-exempt business is conducted, ”
(b)after that paragraph insert—
“(aa)a derivative contract is hedging in relation to a company if or in so far as it is acquired as a hedge of risk in relation to a liability incurred in connection with tax-exempt business,” and
(c)after that subsection insert—
“(4A)In subsection (4)(a) the reference to an asset includes a reference to—
(a)the value of an asset, and
(b)profits attributable to it.”