[F1606BMeaning of “relevant exchange gain” and “relevant exchange loss”U.K.
(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.]
Textual Amendments
F1Ss. 606A-606H inserted (with effect in accordance with Sch. 21 para. 11 of the commencing Act) by Finance Act 2009 (c. 10), Sch. 21 para. 7