Amendment of Part 9 of Schedule 26
Amendment of paragraph 45F of Schedule 2615
1
Amend paragraph 45F11 (creditor relationships: embedded derivatives which are exactly tracking contracts for differences) as follows.
2
In sub-paragraph (1) for paragraphs (a) to (c) substitute—
a
the derivative contract is a loan-contract embedded derivative to which the company is treated as party by virtue of a creditor relationship of the company (“the original relationship”),
c
the derivative contract is treated as a contract for differences by virtue of section 94A(3) of the Finance Act 1996,
3
In sub-paragraph (2)(a) for “creditor relationship” substitute “original relationship”.
4
In sub-paragraph (2)(c) omit sub-paragraph (i).
5
For sub-paragraph (2)(f) substitute—
f
the original asset is not an existing asset.
6
In sub-paragraph (3)(a) for “creditor relationship” substitute “original relationship”.
7
In sub-paragraph (4), in the definition of “C”, for “the asset which represents the creditor relationship” substitute “the original asset”.
8
In sub-paragraph (6)—
a
in paragraph (a)(i) for “the asset representing the creditor relationship” substitute “the original asset”
b
in paragraph (a)(ii) for “corresponding debtor relationship” substitute “debtor relationship corresponding to the creditor relationship mentioned in sub-paragraph (1)”, and.
c
in paragraph (b) for “the asset representing the creditor relationship” substitute “the original asset”.
9
In sub-paragraph (8) for “creditor relationship” substitute “original relationship”.