Debts other than securitiesU.K.
4(1)In a case where—
(a)there is for the purposes of the 1992 Act a disposal of a debt by a qualifying company,
(b)the right to settlement under the debt is a qualifying asset,
(c)the settlement currency of the debt is a currency other than sterling,
(d)immediately before the disposal the company did not hold the debt in exempt circumstances, and
(e)the debt is not a debt on a security,
for the purposes of that Act no chargeable gain or allowable loss shall accrue on the disposal.
(2)Paragraph 3 above applies for the purposes of this paragraph as if references to currency were references to a debt.
[F1(2A)In sub-paragraph (1)(e) above “security” includes a debenture that is deemed to be a security for the purposes of section 251 of the 1992 Act by virtue of subsection (6) of that section (debentures issued on reorganisation etc.)]
(3)This paragraph applies to disposals on or after the company’s commencement day.
Textual Amendments
F1Sch. 17 para. 4(2A) inserted (retrospective to 27.7.1993) by 1995 c. 4, s. 130, Sch. 24 paras. 1, 5