SCHEDULES

SCHEDULE 17 Exchange gains and losses: chargeable gains

Debts other than securities

4

1

In a case where—

a

there is for the purposes of the 1992 Act a disposal of a debt by a qualifying company,

b

the right to settlement under the debt is a qualifying asset,

c

the settlement currency of the debt is a currency other than sterling,

d

immediately before the disposal the company did not hold the debt in exempt circumstances, and

e

the debt is not a debt on a security,

for the purposes of that Act no chargeable gain or allowable loss shall accrue on the disposal.

2

Paragraph 3 above applies for the purposes of this paragraph as if references to currency were references to a debt.

F12A

In sub-paragraph (1)(e) above “security” includes a debenture that is deemed to be a security for the purposes of section 251 of the 1992 Act by virtue of subsection (6) of that section (debentures issued on reorganisation etc.)

3

This paragraph applies to disposals on or after the company’s commencement day.