Amendment of paragraph 45D of Schedule 26
13.—(1) Amend paragraph 45D(1) (creditor relationships: embedded derivatives which are options) as follows.
(2) In sub-paragraph (1) for paragraphs (a) to (c) substitute—
“(a)the derivative contract is a loan-contract embedded derivative to which the company is treated as party by virtue of a creditor relationship of the company (“the original relationship”),
(b)the derivative contract is treated as an option by virtue of section 94A(3) of the Finance Act 1996,”.
(3) In sub-paragraph (2)(a) for “creditor relationship” substitute “original relationship”.
(4) For sub-paragraph (2)(f) substitute—
“(f)the original asset is not an existing asset.”.
(5) In sub-paragraph (3)(a) for “creditor relationship” substitute “original relationship”.
(6) In sub-paragraph (3A) for “paragraph” substitute “Schedule and Chapter 2 of Part 4 of the Finance Act 1996”.
(7) In sub-paragraph (8) for “creditor relationship” substitute “original relationship”.
Paragraph 45D was inserted by article 15 of S.I. 2004/2201 and amended by article 13 of S.I. 2005/2082.