C1C2C3C4C5Part 5Loan Relationships
Pt. 5 applied (with modifications) (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), ss. 990(5), 1184(1) (with Sch. 2)
Pt. 5 modified (15.11.2011 for specified purposes, 30.3.2012 for E.W.) by Localism Act 2011 (c. 20), ss., 240(5)(o), Sch. 24 para. 5; S.I. 2012/628, art. 3(b)
Pt. 5 modified (1.4.2012) by Budget Responsibility and National Audit Act 2011 (c. 4), s. 29, Sch. 4 para. 2; S.I. 2011/2576, art. 5
Chapter 3The credits and debits to be brought into account: general
Exchange gains and losses
328HF1Other interpretative provisions
1
In this Act “ the Part 5 one-way exchange effect provisions ” means sections 328A to 328G and this section.
2
The following provisions of this section have effect for the purposes of the Part 5 one-way exchange effect provisions.
3
References to arrangements include any agreements, understandings, schemes, transactions or series of transactions (whether or not legally enforceable).
4
The circumstances to be taken into account in determining whether a loan relationship or relevant contract is “part of” any arrangements include (in particular)—
a
the circumstances in which it was entered into, acquired or issued,
b
the currency in which it is denominated, and
c
its likely effect.
5
References to the currency in which a relevant contract is denominated are to the currency in which its underlying subject matter is denominated.
6
A currency (“currency A”) appreciates relative to another currency (“currency B”) over a period if—
a
the value expressed in currency B of one unit of currency A at the end of the period, exceeds
b
the value expressed in currency B of one unit of currency A at the beginning of the period,
and the percentage of the appreciation is the amount determined under subsection (7).
7
The percentage of the appreciation is—
a
the difference between the amounts mentioned in paragraphs (a) and (b) of subsection (6), expressed as a percentage of the amount mentioned in that paragraph (b), or
b
if lower, 100%.
8
A currency (“currency A”) depreciates relative to another currency (“currency B”) over a period if—
a
the value expressed in currency B of one unit of currency A at the end of the period, is less than
b
the value expressed in currency B of one unit of currency A at the beginning of the period,
and the percentage of the depreciation is the difference, expressed as a percentage of the amount mentioned in paragraph (b).
9
References to a company connected with company A are to a company connected with company A for the relevant accounting period.
10
Section 466 (companies connected for an accounting period) applies for the purposes of subsection (9).
11
The following provisions apply for the purposes of the Part 5 one-way exchange effect provisions—
sections 577 and 578 (meaning of “relevant contract” etc ),
section 580 (meaning of “option”),
section 583 (meaning of “underlying subject matter”),
section 584 (hybrid derivatives with embedded derivatives),
section 585 (loan relationships with embedded derivatives), and
section 586 (other contracts with embedded derivatives).
12
See section 328A for the meaning of the following expressions—
“the arrangements”;
“company A”;
“the relevant accounting period”;
“the test day”.
Pt. 5 applied (with effect in accordance with Sch. 24 paras. 13-16 of the amending Act) by Finance Act 2009 (c. 10), Sch. 24 para. 15(2)(3)