Amendment of Part 9 of Schedule 26

Amendment of paragraph 45HA of Schedule 2619

1

Amend paragraph 45HA 14 as follows.

2

For sub-paragraph (1) and the heading preceding paragraph 45HA substitute—

Treatment of credits and debits on terminal exercise of non-embedded option or running to delivery of future45HA

1

This paragraph applies where—

a

a company is party to a derivative contract in an accounting period,

b

the derivative contract is a plain vanilla contract which is an option,

c

rights comprised in the plain vanilla contract are exercised to any extent in that accounting period, and

d

those rights are rights to acquire shares.

1A

This paragraph also applies where—

a

a company is party to a derivative contract in an accounting period,

b

the derivative contract is a plain vanilla contract which is a future,

c

delivery is taken of an asset in accordance with the terms of the future, and

d

that asset is shares.

3

In sub-paragraph (2)—

a

for “In any such case” substitute “Where this paragraph applies”, and

b

for “so acquired” substitute “acquired or delivered”.

4

In sub-paragraph (4), in the definition of “G”, for “sub-paragraph (1)(b)” substitute “sub-paragraph (1)(c) or the delivery mentioned in sub-paragraph (1A)(c)”.