SCHEDULES

SCHEDULE 7Loan relationships and derivative contracts

PART 1Loan relationships: amendments of Parts 5 and 6 of CTA 2009

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(1)

Section 359 (exclusion of credits on release of connected companies debts during creditor's insolvency) is amended as follows.

(2)

In subsection (1)(d), for “the condition in question” substitute “ any of those conditions ”.

(3)

After subsection (2) insert—

“(3)

Where the carrying value of a liability representing the debtor relationship has at any time been adjusted as a result of the liability being the hedged item under a designated fair value hedge, this section does not prevent a credit being brought into account for the purposes of this Part in respect of any reversal of that adjustment.”