C10C2C12C9C5C7C1C6C3C4C8Part 5Loan Relationships

Annotations:
Modifications etc. (not altering text)
C10

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)

C2

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)

C12

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)

C5

Pt. 5 modified (with effect in accordance with s. 148 of the amending Act) by Finance Act 2012 (c. 14), s. 88(1)(2)(7) (with s. 147, Sch. 17)

C1

Pt. 5 modified (with effect in accordance with reg. 1(2)(3) of the amending S.I.) by The Taxation of Regulatory Capital Securities Regulations 2013 (S.I. 2013/3209), regs. 1(1), 11(3)-(6)

C6

Pt. 5 modified by 2010 c. 4, s. 356NC(1)-(4) (as inserted (1.4.2014) by Finance Act 2014 (c. 26), Sch. 16 paras. 4, 6)

C3

Pt. 5 modified by 2010 c. 4, s. 356NB(1)-(4) (as inserted (1.4.2014) by Finance Act 2014 (c. 26), Sch. 16 paras. 4, 6)

C4

Pt. 5 modified by 2007 c. 3, s. 809FZZ(9) (as inserted (with effect in accordance with s. 37(4) of the amending Act) by Finance Act 2016 (c. 24), s. 37(2))

C8

Pt. 5 modified by 2010 c. 4, s. 676AG(1) (as inserted (with effect in accordance with Sch. 4 para. 190 of the amending Act) by Finance (No. 2) Act 2017 (c. 32), Sch. 4 para. 75)

C5C1C8Chapter 12Special rules for particular kinds of securities

Derivatives

C11C1416C1Election for application of sections 415 and 585

1

This section applies if—

a

a company is subject to old UKGAAP for a period of account,

b

at the beginning of its first relevant period of account the company did not hold any assets (“relevant assets”) which it is not permitted under old UKGAAP to treat as mentioned in section 415(1),

c

the company subsequently acquires one or more relevant assets (to which sections 415 and 585 do not apply because of the company being subject to old UKGAAP), and

d

the company would have been permitted to treat the relevant assets as mentioned in section 415(1) if it had been subject to—

i

international accounting standards, or

ii

new UK GAAP.

2

The company may elect that this Part and Part 7 (derivative contracts) should apply as if sections 415 and 585 did apply.

3

The election has effect in relation to all relevant assets held by the company including those subsequently acquired, except as provided in subsection (4).

F14

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

5

If an election is made under this section, sections 315 to 318 (adjustments on change of accounting policy) apply as if there were a change of accounting policy consisting of the company treating its relevant assets as mentioned in section 415(1) as from the date the election has effect.

6

See also section 613(4) (which makes provision corresponding to subsection (5) for the purposes of Part 7).

7

In this section—

  • “first relevant period of account”, in relation to a company, means the first period of account of the company beginning on or after 1 January 2005 (the first period in relation to which section 94A of FA 1996 (which is rewritten in section 415) had effect),

  • “old UKGAAP” means UK generally accepted accounting practice as it applied for periods of account beginning before 1 January 2005, and

  • “new UKGAAP” means UK generally accepted accounting practice as it applies for periods of account beginning on or after that date.

8

Section 417 makes further provision about elections under this section.