PART VIIICHARGEABLE GAINS
Derivatives over assets the subject of euroconversion38.
(1)
This regulation applies where—
(a)
a derivative represents rights or obligations in respect of any asset or liability or other amount (“the underlying asset”),
(b)
there is a euroconversion of the underlying asset,
(c)
a transaction is entered into in relation to that derivative that would, but for this regulation, result in a disposal for the purposes of the 1992 Act of the derivative (“the original derivative”) and the acquisition of a new derivative,
(d)
the terms of the new derivative differ from the terms of the original derivative only to the extent necessary to reflect the euroconversion of the underlying asset, and
(e)
no party to the transaction receives any consideration in respect of the original derivative other than the new derivative.
(2)
The transaction described at paragraph (1)(c) shall not be treated for the purposes of the 1992 Act as involving any disposal of the original derivative or any acquisition of the new derivative, but the original derivative and the new derivative shall be treated for those purposes as the same asset acquired as the original derivative was acquired.