Modifications etc. (not altering text)
C1Pt. II Chapter II (ss. 125-170) modified (1.5.1995) by 1988 c. 1, Sch. 24 para. 19(2) (as inserted (1.5.1995) by 1995 c. 4, s. 133, Sch. 25 paras. 1, 6(5))
Pt. II Chapter II (ss. 125-170) restricted (31.7.1998) by 1988 c. 1, Sch. 28AA para. 8 (as inserted (31.7.1998) by 1998 c. 36, s. 108, Sch. 16 para. 8(1)(a))
Pt. II Chapter II (ss. 125-170): power to amend conferred (3.5.1994) by 1994 c. 9, s. 177(6)(b)
Pt. II Chapter II (ss. 125-170) excluded (3.5.1994) by 1994 c. 9, ss. 226(2), 230
Pt. II Chapter II (ss. 125-170) modified (19.9.1994) by 1994 c. 21, s. 21, Sch. 4 Pt. I para. 23(2) (with s. 40(7)); S.I. 1994/2189, art. 2, Sch.
Pt. II Chapter II (ss. 125-170) modified (23.3.1995) by S.I. 1994/3226, reg. 3(2)
Pt. II Chapter II (ss. 125-170) applied (23.3.1995) by S.I. 1994/3231, reg. 2(1)
Pt. II Chapter II (ss. 125-170) modified (29.4.1996) by 1996 c. 8, s. 105, Sch. 15 Pt. I para. 22(1) (with ss. 80-105)
C2Pt. II Chapter II to be construed with 1994 c. 31, Sch. 4 Pt. I para. 23 (19.9.1994) by 1994 c. 21, s. 21, Sch. 4 Pt. I para. 23(5); S.I. 1994/2189, art. 2, Sch.
(1)This section applies where (apart from a claim under this section as regards an accounting period) an unrealised exchange gain would accrue to a company—
(a)for an accrual period constituting or falling within the accounting period, and
(b)as regards a long-term capital asset or a long-term capital liability;
and the reference here to an exchange gain is to an exchange gain of a trade or an exchange gain of part of a trade or a non-trading exchange gain.
(2)This section does not apply unless an amount is available for relief under this section for the accounting period.
(3)The company may claim that—
(a)the gain, or part of it, shall be treated in accordance with section 140(3) below, and
(b)an amount shall be treated in accordance with section 140(4) to (10) below as regards the asset or liability.
(4)The claim must—
(a)stipulate the amount of the gain or part to be treated as mentioned in subsection (3)(a) above;
(b)stipulate the amount to be treated as mentioned in subsection (3)(b) above;
(c)identify the asset or liability concerned.
(5)The following rules apply to a claim—
(a)only one claim may be made as regards an accounting period, but where this section applies in relation to two or more gains which would accrue to a company for an accrual period or accrual periods constituting or falling within the accounting period the claim may be made in relation to more than one of the gains;
(b)the amount stipulated under subsection (4)(b) above as regards an asset or liability must be the same as, and must be expressed in the same currency as, the amount of the gain or part stipulated under subsection (4)(a) above as regards the asset or liability;
(c)the amount (or total of the amounts) stipulated under subsection (4)(a) above as regards an accounting period must not exceed the amount available for relief under this section for the accounting period.
(6)A claim may not be made or withdrawn as regards an accounting period if—
(a)the company has been assessed to corporation tax for the period, and
(b)the assessment has become final and conclusive;
but the preceding provisions of this subsection do not apply if the claim or withdrawal is made before the expiry of the period of two years beginning with the end of the accounting period.
(7)In a case where—
(a)the period of six years beginning with the end of an accounting period expires, and
(b)no assessment of the company to corporation tax for the accounting period has become final and conclusive,
a claim may not be made or withdrawn as regards that accounting period.
(8)In a case where—
(a)subsection (6) or (7) above would otherwise prevent a claim being made in a particular case, and
(b)the Board make a determination under this subsection,
a claim may be made on or before such day as the Board allow.
Modifications etc. (not altering text)
C3S. 139 modified (23.3.1995) by S.I. 1994/3226, reg. 2(2)
S. 139 modified (23.3.1995) by S.I. 1994/3228, regs. 2(2)(6), 4(2)
S. 139 modified (1.1.1999) by S.I. 1998/3177, reg. 7