Main computational provisions
2(1)Section 84A of that Act (exchange gains and losses from loan relationships) is amended as follows.
(2)For subsection (3) substitute—
“(3)Subsection (1) does not apply to an exchange gain or loss of a company to the extent that it arises—
(a)in relation to an asset or liability representing a loan relationship of the company, or
(b)as a result of the translation from one currency to another of the profit or loss of part of the company’s business,
and is recognised in the company’s statement of recognised gains and losses or statement of changes in equity.
(3A)Subsection (1) does not apply to so much of an exchange gain or loss arising to a company in relation to an asset or liability representing a loan relationship of the company as falls within a description prescribed for the purpose in regulations made by the Treasury.”.
(3)Omit subsections (4) to (7).
(4)In subsection (8) after “(3)” insert “or (3A)”.
(5)In subsection (10) at the end add “and power to make provision subject to an election or to other prescribed conditions”.