Amendment of Part 9 of Schedule 26

Amendment of paragraph 45H of Schedule 2617

1

Amend paragraph 45H13 as follows.

2

In sub-paragraph (2) for paragraph (a) substitute—

a

sub-paragraph (3) has effect in relation to a disposal of the asset representing the original creditor relationship mentioned in paragraph 45D(1)(a) (“the original relationship”), and

3

In sub-paragraph (3) for “asset representing the associated creditor relationship” substitute “original asset”.

4

After sub-paragraph (5) insert—

5A

Sections 37 and 39 of TCGA 1992 do not apply in relation to a disposal mentioned in sub-paragraph (1)(b), (2)(a) or (b) above.

5

In sub-paragraph (6), in the definition of “G”, for paragraph (a) substitute—

a

the relevant Chapter 2 amount, and

6

In sub-paragraph (7) for paragraph (a) substitute—

a

the “relevant Chapter 2 amount” means the amount by which the carrying value of the loan-contract host contract at the date on which the option is exercised exceeds the carrying value of that contract at—

i

the date on which the company became party to the original relationship, or

ii

(if later) the date on which the derivative contract became one to which paragraph 45D applies;