(1)Profits or losses of a capital nature arising to an investment trust from a creditor relationship may not be brought into account as credits or debits for the purposes of this Part.
(2)For the purposes of this section “profits or losses of a capital nature” means profits or losses that—
(a)are accounted for through the capital column of the income statement in accordance with the Statement of Recommended Practice, or
(b)would have been so accounted for if that Statement had been applied correctly.
(3)“The Statement of Recommended Practice”, in relation to an accounting period for which it is required or permitted to be used, means—
(a)the Statement of Recommended Practice relating to Investment Trust Companies, issued by the Association of Investment Trust Companies in January 2003, as from time to time modified, amended or revised, or
(b)any subsequent Statement of Recommended Practice relating to investment trusts, as from time to time modified, amended or revised.
(4)The Treasury may by order amend the definition of “profits or losses of a capital nature” in subsection (2), so far as it applies in relation to an investment trust that prepares accounts in accordance with international accounting standards.
(5)An order under subsection (4) may make—
(a)different provision for different cases, and
(b)incidental, supplemental, consequential and transitional provision and savings.
(1)Profits or losses of a capital nature arising to a venture capital trust from a creditor relationship may not be brought into account as credits or debits for the purposes of this Part.
(2)For the purposes of this section “profits or losses of a capital nature” means profits or losses that—
(a)are accounted for through the capital column of the income statement in accordance with the Statement of Recommended Practice, or
(b)would have been so accounted for if the venture capital trust had been an investment trust and that Statement had been applied correctly.
(3)In this section “the Statement of Recommended Practice” has the meaning given in section 395(3) (investment trusts: profits or losses of a capital nature).
(4)The Treasury may by order amend the definition of “profits or losses of a capital nature” in subsection (2), so far as it applies in relation to a venture capital trust that prepares accounts in accordance with international accounting standards.
(5)An order under subsection (4) may make—
(a)different provision for different cases, and
(b)incidental, supplemental, consequential and transitional provision and savings.