Part 5 U.K. Loan Relationships

Modifications etc. (not altering text)

C1 Pt. 5 applied (with effect in accordance with Sch. 24 paras. 13-16 of the amending Act) by Finance Act 2009 (c. 10), Sch. 24 para. 15(2)(3)

C2 Pt. 5 applied (with modifications) (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), ss. 990(5), 1184(1) (with Sch. 2)

Chapter 3 U.K. The credits and debits to be brought into account: general

Exchange gains and losses U.K.

[F1 328G Meaning of “relevant contingent contract” and “operative condition” U.K.

(1) In the Part 5 one-way exchange effect provisions “ relevant contingent contract ” means a contract that meets the following two conditions.

(2) The first condition is that company A, or a company connected with company A (“ the relevant company ”), is a party to the contract.

(3) The second condition is that the contract includes a condition—

(a) on the meeting of which a right or liability under the contract is altered, and

(b) that operates (directly or indirectly) by reference to the exchange rate between the operating currency of the relevant company and another currency.

(4) In this section “ operating currency ” has the same meaning as in section 328D.

(5) In the Part 5 one-way exchange effect provisions, “ operative condition ” means a condition of the kind mentioned in subsection (3). ]

Textual Amendments

F1 Ss. 328A-328H inserted (with effect in accordance with Sch. 21 para. 11 of the amending Act) by Finance Act 2009 (c. 10), Sch. 21 para. 3