SCHEDULES

SCHEDULE 15Exchange gains and losses: alternative calculation

Exempt circumstances

2

1

Regulations may provide that where—

a

as regards an asset, liability or contract an initial exchange gain or initial exchange loss accrues to a company for an accrual period under section 125, 126 or 127 of this Act or would so accrue apart from regulations under this Schedule,

b

at any time on a day in the period the asset or contract was held, or the liability was owed, by the company in exempt circumstances, and

c

such other conditions as may be prescribed are fulfilled,

the amount of the gain or loss shall be found in accordance with the alternative method of calculation.

2

Regulations may also provide that as regards any such day as is mentioned in sub-paragraph (1) above the accrued amount shall be ascertained in accordance with prescribed rules.

3

Regulations may be so framed that the accrued amount as regards a day depends on the extent to which an asset or contract is held, or a liability is owed, in exempt circumstances.

4

For the purposes of this paragraph an asset or contract is held, or a liability is owed, in exempt circumstances at a given time if it is then held or owed—

a

for the purposes of long term insurance business;

b

for the purposes of mutual insurance business;

c

for the purposes of the occupation of commercial woodlands;

d

by a housing association approved at that time for the purposes of section 488 of the Taxes Act 1988;

e

by a self-build society approved at that time for the purposes of section 489 of that Act.

5

In this paragraph—

  • “long term insurance business” means insurance business of any of the classes specified in Schedule 1 to the [1982 c. 50.] Insurance Companies Act 1982;

  • “commercial woodlands” means woodlands in the United Kingdom which are managed on a commercial basis and with a view to the realisation of profits.