6(1)In paragraph 19A of Schedule 9 to FA 1996 (loan relationships: adjustment on change of accounting policy), after sub-paragraph (4B) insert—E+W+S+N.I.
“(4BA)In determining the accounting value of an asset of the company at the end of the earlier period, no account shall be taken of a debit that in a period of account beginning before 1st January 2005 was disallowed for tax purposes—
(a)because of the assumption required by paragraph 5(1) above, or
(b)because the exceptions in section 74(1)(j) of the Taxes Act 1988 did not apply.”.
(2)This amendment has effect for periods of account beginning on or after 1st January 2005.