PART 1Income tax, corporation tax and capital gains tax

CHAPTER 4Capital gains

35Foreign currency bank accounts

1

TCGA 1992 is amended as follows.

2

In section 13 (attribution of gains to members of non-resident companies), in subsection (5), omit paragraph (c).

3

In section 251 (debts: general provisions), after subsection (5) insert—

5A

References in this section to the disposal of a debt include the disposal of an interest in a debt (and, in the case of an interest in a debt, the reference in subsection (3) to the amount of the debt is to the amount of the person's interest in the debt).

4

For section 252 substitute—

252Foreign currency bank accounts

1

Section 251(1) does not apply in relation to a gain accruing to a person on a disposal of a foreign currency debt (or an interest in such a debt) unless that person is—

a

an individual,

b

the trustees of a settlement, or

c

the personal representatives of a deceased person.

2

A “foreign currency debt” is a debt—

a

owed by a bank in a currency other than sterling, and

b

represented by a sum standing to the credit of an account-holder in an account in that bank.

5

Omit section 252A and Schedule 8A (foreign currency bank accounts).

6

The amendments made by this section have effect in relation to disposals occurring on or after 6 April 2012.