SCHEDULES

SCHEDULE 21Foreign exchange: anti-avoidance

Commencement

11

1

The amendments made by this Schedule have effect—

a

in relation to exchange gains and losses arising in accounting periods beginning on or after 22 April 2009, and

b

subject to the following provisions of this paragraph, in relation to exchange gains and losses arising in straddling accounting periods.

2

In this paragraph “straddling accounting period” means an accounting period that—

a

begins before 22 April 2009, and

b

ends on or after that date.

3

An exchange gain or loss that arises in a straddling accounting period in relation to—

a

an asset or liability representing a loan relationship, or

b

a derivative contract,

is to be treated for the purposes of this paragraph as if it were made up of two amounts.

4

Those two amounts are the exchange gains or losses that would arise in relation to the loan relationship or derivative contract in—

a

that part of the period that falls before 22 April 2009, and

b

that part of the period that falls on or after that date,

if those parts were separate accounting periods.

5

The amendments made by this Schedule have effect, in relation to an exchange gain or loss of the kind mentioned in sub-paragraph (3), as if the gain or loss were the amount determined in relation to it under sub-paragraph (4)(b).