Amendment of paragraph 205.

(1)

Paragraph 20 (chargeable equity and liabilities of a relevant non-banking group) is amended as follows.

(2)

In sub-paragraph (8)—

(a)

in paragraph (a) omit “, and N has assets which correspond to those liabilities”; and

(b)

for paragraph (b) substitute—

“(b)

M, or another entity within sub-paragraph (9), recognises, as assets, amounts due from N or another entity not within that sub-paragraph (“N’s liabilities”),”.

(3)

In sub-paragraph (10)—

(a)

in paragraph (b) for “N’s assets corresponding to those liabilities are” substitute “N recognises assets in respect of those liabilities as”;

(b)

for paragraph (c) substitute—

“(c)

references to amounts due from N or another entity not within sub-paragraph (9) include securities provided by M or another entity within that sub-paragraph to N or another entity not within sub-paragraph (9) as collateral, but only where M or that other entity within that sub-paragraph recognises those securities in its balance sheet or statement of financial position, and”;

(c)

omit paragraph (d) (and the “and” after it);

(d)

in paragraph (e)(i) omit “assets which correspond to”; and

(e)

after paragraph (e) insert—

“Section 556 of CTA 2009 (meaning of securities and similar securities) applies for the purposes of this sub-paragraph as it applies for the purposes of Chapter 10 of Part 6 of that Act.”

(4)

Omit sub-paragraph (11).