Finance Act 2004 (c. 12)

SCHEDULES

SCHEDULE 10 U.K. Amendment of enactments that operate by reference to accounting practice

Part 2 U.K. Derivative contracts

Special computational provisions U.K.

54 U.K. In paragraph 22A of that Schedule (deemed assignment of derivative contracts on company ceasing to be resident in UK etc.), omit sub-paragraph (5).

55 U.K. In paragraph 23 of that Schedule (derivative contracts for unallowable purposes), in sub-paragraphs (2) and (3) omit “given by the authorised accounting method used”.

56 (1) Paragraph 25 of that Schedule (debits and credits treated as relating to capital expenditure) is amended as follows. U.K.

(2) In sub-paragraph (1) omit “given by an authorised accounting method”.

(3) After sub-paragraph (3) add—

“(4) Where a debit is brought into account by a company in accordance with sub-paragraph (1), no debit shall be brought into account in respect of—

(a) the writing down of so much of the value of the fixed capital asset or project as is attributable to that debit, or

(b) so much of any amortisation or depreciation as represents a writing off of the interest component of the asset.”.

57 U.K. In paragraph 30 of that Schedule (transactions within groups: authorised mark to market basis of accounting)—

(a) in the heading for “authorised mark to market basis of accounting” substitute “ fair value accounting ”;

(b) in sub-paragraph (1) for “an authorised mark to market basis of accounting” substitute “ fair value accounting ”.

58 U.K. In paragraph 31A of that Schedule (amounts imputed under Schedule 28AA to the Taxes Act 1988), in sub-paragraph (2) omit “, notwithstanding the provisions of any authorised accounting method,”.