SCHEDULES

SCHEDULE 2Transitionals and savings

Part 8Loan relationships

Restriction on bringing into account credits resulting from reversal of debits disallowed in a period of account beginning before 1 January 2005

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1

No credit is to be brought into account for the purposes of Part 5 in respect of the reversal of a debit that was disallowed for tax purposes in a period of account beginning before 1 January 2005—

a

because of the assumption required by paragraph 5(1) of Schedule 9 to FA 1996, or

b

because the exceptions in section 74(1)(j) of ICTA did not apply.

2

This paragraph does not apply if fair value accounting is used.