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SCHEDULES

SCHEDULE 6U.K.Avoidance involving financial arrangements

Derivative contracts: transactions within groupsU.K.

22(1)In Schedule 26 to FA 2002 (derivative contracts), paragraph 28 (transactions within groups) is amended as follows.U.K.

(2)After sub-paragraph (3) (rule for determining the credits and debits to be brought into account) insert—

(3ZA)In any case where a discount (within the meaning given by section 100(3A) of the Finance Act 1996) arises in respect of the transaction or the series of transactions, the consideration for the purposes of sub-paragraph (3)(a) is to be increased by the amount of the discount..

(3)The amendment made by this paragraph has effect in any case where the relevant transaction is on or after 22nd March 2006.

(4)For this purpose “the relevant transaction” means—

(a)the related transaction mentioned in paragraph 28(2)(a) of Schedule 26 to FA 2002,

(b)the first of the series of transactions mentioned in paragraph 28(2)(b) of that Schedule, or

(c)the transfer mentioned in paragraph 28(2)(c) or (d) of that Schedule,

as a result of which paragraph 28 of that Schedule applies or, but for paragraph 30 of that Schedule, would apply.