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You are here: BAILII >> Databases >> United Kingdom Statutory Instruments >> The Loan Relationships and Derivative Contracts (Disregard and Bringing into Account of Profits and Losses) (Amendment) Regulations 2006 No. 3236 URL: https://www.bailii.org/uk/legis/num_reg/2006/20063236.html |
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Made | 6th December 2006 | ||
Laid before the House of Commons | 6th December 2006 | ||
Coming into force | 27th December 2006 |
(3) In paragraph (4) after "(3)" insert "or (3A)".
(4) In paragraph (5A)(ii) after "risks" insert ", in relation to which the contract was intended to act as a hedge,".
(5) After paragraph (5A) insert—
(6) In paragraphs (6A) and (7) for "(3) or (5)" substitute "(3), (3A), (5) or (5A)".
(7) After paragraph (7) insert—
(b) must be made in writing to Her Majesty's Revenue and Customs;
(c) is irrevocable; and
(d) applies in relation to accounting periods beginning on or after 1st January 2006.
(7B) An election—
(8) In paragraph (9) omit "the".
(9) In paragraph (9A) at the end insert "except where revoked by an election made under paragraph (5B)".
(10) In—
for "(3) or (5)" substitute "(3), (3A), (5) or (5B)".
(11) In paragraph (12)(a) for "(3A)" substitute "(3B)".
4.
In regulation 9 (profits or losses arising from derivative contracts which are interest rate contracts) in paragraph (1)(b) after "risks" insert ", in relation to which the contract was intended to act as a hedge,".
5.
—(1) Amend regulation 9A[6] as follows.
(2) In paragraph (1)—
(3) In paragraph (2)(b) at the end insert "where the profit or loss for corporation tax purposes in relation to that asset or liability will not fall to be computed in accordance with generally accepted accounting practice".
(4) In paragraph (3) after "(2)(a)" insert "or (b)".
(5) After paragraph (3) insert—
the amount to be brought into account for the purposes of paragraph 17C(1)(b) of Schedule 26 to the Finance Act 2002 is such amount as is just and reasonable in the circumstances and with regard to whether as a result of the change any amounts cease to be brought into account or are brought into account more than once, and that amount shall be brought into account on the first day of the first accounting period beginning on or after 1st January 2006.".
6.
—(1) Amend regulation 11 as follows.
(2) For paragraph (1) substitute—
of the Finance Act 1996 applied immediately before the start of the first accounting period of the company to begin on or after 1st January 2005, and
(b) section 94A of the Finance Act 1996 (loan relationships with embedded derivatives)[9] applies in the first accounting period of the company to begin on or after 1st January 2005.
(1A) Where paragraph (1) does not apply, for the purposes of section 85B(3) of the Finance Act 1996 the amounts described in paragraph (3) are prescribed in relation to a company which is party to a creditor relationship to which—
of the Finance Act 1996 applies immediately before the start of the first accounting period of the company to begin on or after 1st January 2005.".
(3) In paragraph (2)(b) at the beginning insert "where paragraph (1)(a)(i) applies,".
(4) In paragraph (3)(b) at the beginning insert "where paragraph (1A)(a) applies,".
7.
—(1) Amend regulation 12 as follows.
(2) For paragraphs (1) and (2) substitute—
of the Finance Act 1996 applies immediately before the start of the first accounting period of the company to begin on or after 1st January 2005, and
(b) section 94A of the Finance Act 1996 applies in the first accounting period of the company to begin on or after 1st January 2005.
This is subject to paragraph (4).
(1A) Where paragraph (1) does not apply, for the purposes of section 85B(3) of the Finance Act 1996 the amounts described in paragraph (2A) are prescribed in relation to a company which is party to a debtor relationship to which—
of the Finance Act 1996 applies immediately before the start of the first accounting period of the company to begin on or after 1st January 2005.
This is subject to paragraph (4).
(2) The prescribed amounts are—
(2A) The prescribed amounts are—
Claire Ward
Two of the Lords Commissioners of Her Majesty's Treasury
6th December 2006
[2] 2002 c. 23. Paragraph 16(3A) was substituted by paragraph 48(2), and paragraphs 17C(1) and 17C(3)(b) were substituted by paragraph 50, of Part 2 of Schedule 10 to the Finance Act 2004.back
[4] S.I. 2004/3256, amended by S.I. 2005/2012 and 2005/3374.back
[5] Regulation 6 was amended by regulations 2 and 7 of S.I. 2005/2012 and regulations 2 and 7 of S.I. 2005/3374.back
[6] Regulation 9A was inserted by regulation 10 of S.I. 2005/3374.back
[7] Section 92 was amended by section 65 of the Finance Act 1999 (c. 16), sections 72, 73(1), 82 and 141 of, and paragraphs 1 and 5 of Schedule 23 and Part 3(8) and (10) of Schedule 40 to, the Finance Act 2002, section 882(1) of, and paragraphs 485 and 486 of Schedule 1 to, the Income Tax (Trading and Other Income) Act 2005 (c. 5) and was repealed by sections 52 and 326 of, and paragraph 9 of Schedule 10 and Part 2(6) of Schedule 42 to, the Finance Act 2004.back
[8] Section 93 was amended by sections 75 and 141 of, and Part 3(8) of Schedule 40 to, the Finance Act 2002 and was repealed by sections 52 and 326 of, and paragraph 11(1) of Schedule 10 and Part 2(6) of Schedule 42 to, the Finance Act 2004.back
[9] Section 94A was inserted by section 52 of, and paragraph 13 of Schedule 10 to, the Finance Act 2004 and amended by section 80 of, and paragraph 28(1) and (2) of Schedule 4 to, the Finance Act 2005.back
[10] Section 92A was inserted by section 76 of the Finance Act 2002, amended by sections 83(1)(b) and (3) and 141 of, and paragraphs 17 and 18 of Schedule 27 and Part 3(13) of Schedule 40 to, that Act and was repealed by sections 52 and 326 of, and paragraph 9 of Schedule 10 and Part 2(6) of Schedule 42 to, the Finance Act 2004.back
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