SCHEDULES

SCHEDULE 1Minor and consequential amendments

Part 2Other enactments

Finance Act 2006 (c. 25)

688

1

Amend section 120 (calculation of profits) as follows.

2

For subsection (2) substitute—

2

Profits (of any kind) are calculated in the same way as profits of a UK property business are calculated for the purposes of the charge to tax under Chapter 2 of Part 4 of CTA 2009 (as to which see, in particular, section 210 of that Act).

3

In subsection (3) for the words from the beginning to “(Schedule A:” substitute “ Section 211(1) of CTA 2009 (property businesses: ”.

4

For subsection (4)(c) substitute—

c

“embedded derivatives” is to be read in accordance with section 584 or 586 (as the case may be) of CTA 2009, and

d

“the host contract” means—

i

the rights and liabilities within section 584(1)(b)(ii) of CTA 2009, or

ii

the rights and liabilities within section 586(1)(b)(ii) of that Act,

as the case may be.

5

In subsection (5)—

a

for “Schedule 26 to FA 2002” substitute “ Part 7 of CTA 2009 ”, and

b

for “paragraph 4(2)(b)” substitute “ section 589(2)(b) and (c) of that Act ”.