SCHEDULES
SCHEDULE 6Avoidance involving financial arrangements
Derivative contracts: transactions within groups (fair value accounting)
23
1
In Schedule 26 to FA 2002 (derivative contracts), paragraph 30 (transactions within groups: fair value accounting) is amended as follows.
2
In sub-paragraph (1) (paragraph 28 not to apply where transferor uses fair value accounting) for paragraph (b) (treatment of transferee in respect of the transaction) substitute—
b
for any accounting period in which it is a party to the contract, the transferee company shall be treated for the purpose of determining the credits and debits to be brought into account for the purposes of this Schedule in respect of the contract as if it had acquired the contract for a consideration equal to the amount mentioned in paragraph (a) (but on the assumption that sub-paragraph (1A) is omitted).
3
After that sub-paragraph insert—
1A
In any case where a discount (within the meaning given by section 100(3A) of the Finance Act 1996) arises in respect of the transaction or the series of transactions, the amount to be brought into account by virtue of sub-paragraph (1)(a) is to be increased by the amount of the discount.
4
The amendments made by this paragraph have effect in any case where the relevant transaction is on or after 22nd March 2006.
5
For this purpose “the relevant transaction” has the meaning given by paragraph 22.