17.—(1) Amend paragraph 45H(1) 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;”.
Paragraph 45H was inserted by article 17 of S.I. 2005/2082 and amended by article 9 of S.I. 2005/3440.