Regulation 10 Currency contracts (including options)—conversion into euro
This regulation applies in a case where, as a result of the adoption of the euro by member States—
the amounts of both the currencies specified in a currency contract referred to in section 126 of the Finance Act 1993 (“section 126”), or in a currency contract referred to in section 150 of the Finance Act 1994 (“section 150”), are converted into euro, and
the effect is that the currency contract (“the original currency contract”) is rescinded and replaced by a new contract which, but for the adoption of the euro, would have been a currency contract.
This regulation also applies in a case where—
one of the currencies (“the former currency”) specified in a currency contract referred to in section 126 or section 150 is in a currency other than euro and the other currency is either in euro or expressed to be in the single currency,
as a result of the adoption of the euro by a member State, the former currency is converted into euro, and
the effect is that the currency contract (“the original currency contract”) is rescinded and replaced by a new contract which, but for the adoption of the euro, would have been a currency contract.
In each of the cases referred to in paragraphs (1) and (2) the new contract shall be treated for the purposes of section 126 or, as the case may be, section 150 as if it were a currency contract and were the same contract as the original currency contract, made when the original currency contract was made.