PART IIMISCELLANEOUS TRANSITIONAL PROVISIONS

Bad debts4.

(1)

Section 144(1) shall have effect in any case where—

(a)

the asset or liability referred to in subsection (1)(a) is an existing asset or liability held or owed by a qualifying company, and

(b)

the accounting period referred to in subsection (1)(b) is the company’s accounting period ending immediately before the company’s commencement day,

subject to paragraph (2) below.

(2)

Subsection (1) shall have effect as if for the words following paragraph (b) there shall be substituted—

  • “the company shall be treated for the purposes of this Chapter as if it ceased to be entitled or subject to the asset or liability immediately before the end of the company’s commencement day, and any exchange gain or loss accruing to the company on that day shall be deemed not to accrue.”