Amendment of Part 9 of Schedule 26

Amendment of paragraph 45HA of Schedule 26

19.—(1) Amend paragraph 45HA (1) 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 future

45HA.—(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)”.