C1C2Part 7Derivative contracts
Chapter 3Credits and debits to be brought into account: general
F1Exchange gains and losses
Pt. 7 Ch. 3 crossheading substituted (with effect in accordance with Sch. 21 para. 11 of the commencing Act) by Finance Act 2009 (c. 10), Sch. 21 para. 5
606BF2Meaning of “relevant exchange gain” and “relevant exchange loss”
1
For the purposes of section 606A an exchange gain or loss of a company is “relevant” if—
a
it arises in relation to—
i
an asset or liability representing a loan relationship to which the company is a party, or
ii
a relevant contract to which the company is a party,
b
the loan relationship or relevant contract is part of the arrangements, and
c
a debit or credit in respect of the exchange gain or loss is required to be brought into account by the company for the purposes of corporation tax.
2
For the purposes of subsection (1)(c)—
a
the arrangements are to be treated as not having a one-way exchange effect in relation to the company for the purposes of section 328 or 606 (whether or not they would have such an effect apart from this subsection), and
b
sections 441 and 442 (loan relationships: unallowable purposes) and 690 to 692 (derivative contracts: unallowable purposes) are to be disregarded.
Pt. 7 modified (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), ss. 601, 1184(1) (with Sch. 2)