Explanatory note

Chapter II of Part II of the Finance Act 1993 (“Chapter II”) makes provision in connection with exchange gains and losses.

Section 165 of that Act (“section 165”) provides, in subsection (1), that Chapter II applies where a qualifying asset is one to which the company becomes entitled on or after the company’s commencement day; where a qualifying liability is one to which the company becomes subject on or after that day; and where the rights and duties under a currency contract are ones to which the company becomes entitled and subject on or after that day. Subsection (7) of section 165 provides that, for the purposes of that section, a company’s commencement day is the first day of its first accounting period to begin after the day preceding the appointed day; and that the appointed day is such day as may be appointed by order.

This Order appoints 23rd March 1995 as the appointed day for the purposes of section 165.