This section applies if a loan relationship is represented by an index-linked gilt-edged security.

The amounts to be brought into account for the purposes of this Part are to be determined using fair value accounting.

But, in calculating those amounts, the adjustment specified in section 400 (adjustments for changes in index) must be made if that section applies.

In this section and section 400 “index-linked gilt-edged securities” means any gilt-edged securities under which the amounts of the payments are determined wholly or partly by reference to the retail prices index.

For the meaning of “gilt-edged securities”, see section 476(1).