Part 2Trading income
Chapter 11Trade profits: other specific trades
Dealers in securities etc.
149Taxation of amounts taken to reserves
1
This section applies for the purpose of calculating the profits of a person's trade if a profit on the sale of securities would be brought into account in calculating the profits of the trade.
2
Profits and losses from the securities that in accordance with generally accepted accounting practice are—
a
calculated by reference to the fair value of the securities, and
b
recognised in the person's statement of recognised gains and losses or statement of changes in equity,
are brought into account in calculating the profits of the trade.
3
But subsection (2) does not apply—
a
to an amount so far as deriving from or otherwise relating to an amount brought into account under that subsection in an earlier period of account, or
b
to an amount recognised for accounting purposes by way of correction of a fundamental error.
4
In this section “securities” includes—
a
shares,
b
rights of unit holders in unit trust schemes to which TCGA 1992 applies as a result of section 99 of TCGA 1992,
F1ba
rights of participants F2in schemes or funds to which TCGA 1992 applies as a result of section 103D of TCGA 1992, and
c
in the case of a company with no share capital, interests in the company possessed by members of the company,
but does not include a loan relationship (within the meaning of Chapter 2 of Part 4 of FA 1996).