Regulation 17 Application, etc. of Part IV

(1)

This Part applies in relation to an existing asset or liability held or owed by a company which immediately before its commencement day was within the charge to corporation tax where—

(a)

the asset or liability is the right to settlement of a debt or the duty to settle a debt which in either case is fixed (within the meaning of regulation 3) as to its amount or its term (or both), and

(b)

any exchange difference accruing to the company on a disposal or settlement by the company of the asset or liability immediately before the company’s commencement day would not have been taken into account, or would not have been wholly taken into account, for the purposes of corporation tax in computing the company’s profits and gains of that accounting period or would not be so taken into account if the company had been within the charge to corporation tax at the time the gain or loss accrued.

(2)

For the purposes of the Tables set out in regulation 20, all amounts shall be taken to be positive, but for all other computations for the purposes of this Part, an amount which is a gain shall be taken to be a positive figure and an amount which is a loss shall be taken to be a negative figure.

(3)

Regulations 18 to 20 have effect subject to regulations 21 and 22, and in regulations 18, 19 and 21 “the current period” has the same meaning as in regulation 20.