Regulation 3

For paragraph (3) of regulation 1 of the principal Regulations there shall be substituted—

“(3)

In these Regulations unless the context otherwise requires—

• “basic valuation” shall be construed in accordance with section 159(1) of the 1993 Act;

• “loan relationship” shall be construed in accordance with the Corporation Tax Acts, except that a relationship shall not be a loan relationship where the profits or gains chargeable to tax under Case III of Schedule D which arise from the relationship are confined to interest;

• “new holding” and “original shares” have the meanings given by section 126(1) of the 1992 Act;

• “regulation 7 asset” shall be construed in accordance with regulation 7(1);

• “the Taxes Act” means the Income and Corporation Taxes Act 1988^f1;

• “the 1992 Act” means the Taxation of Chargeable Gains Act 1992^f2;

• “the 1993 Act” means the Finance Act 1993.”