Amendment of paragraph 226

1

Paragraph 22 (chargeable equity and liabilities of UK resident banks and building societies which are not members of groups) is amended as follows.

2

In sub-paragraph (1)—

a

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

b

for paragraph (b) substitute—

b

the relevant entity recognises, as assets, amounts due from that other entity (“N”) to the relevant entity (“N’s liabilities”),

3

In paragraph 22(2)—

a

for paragraph (b) substitute—

b

references to amounts due from N include securities provided by the relevant entity to N as collateral, but only where the relevant entity recognises those securities in its balance sheet or statement of financial position, and

b

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

c

after paragraph (d) 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 (3).