Finance Act 1995

Assets and liabilities

4 (1) Section 153 (qualifying assets and liabilities) shall be amended as follows.

(2) In subsection (4) (certain convertible securities excluded from qualifying assets) for the words from “which” to “shares” there shall be substituted “and did not represent a normal commercial loan when it was created”.

(3) In subsection (6) (certain convertible securities excluded from qualifying liabilities) for the words from “which” to “shares” there shall be substituted “and did not represent a normal commercial loan when it was created”.

(4) The following subsection shall be inserted after subsection (11)—

“(11A) In subsections (4) and (6) above “normal commercial loan” has the meaning which would be given by sub-paragraph (5) of paragraph 1 of Schedule 18 to the Taxes Act 1988 if—

(a) for paragraph (a)(i) to (iii) of that sub-paragraph there were substituted the words “corporate bonds (within the meaning of section 117 of the Taxation of Chargeable Gains Act 1992)”, and

(b) paragraphs (b) and (c) of that sub-paragraph were omitted.”