Finance (No. 2) Act 2005

8(1)In section 116(8A) of TCGA 1992 (reorganisations, conversions and reconstructions: application of loan relationships regime in certain cases)—U.K.

(a)after “shall have effect” insert “ , subject to subsection (8B) below, ”, and

(b)for “that subsection” substitute “ subsection (6) above ”.

(2)After that subsection insert—

(8B)Subsection (8A) above does not apply where the relevant transaction is a conversion of securities occurring in consequence of the operation of the terms of any security or of any debenture which is not a security.

Expressions used in this subsection have the same meaning as they have for the purposes of section 132..

(3)These amendments have effect in relation to transactions occurring after 26th May 2005.