Paragraph 2

United Kingdom

(1)

Regulations may provide that where—

(a)

as regards an asset, liability or contract an initial exchange gain or initial exchange loss accrues to a company for an accrual period under section 125, 126 or 127 of this Act or would so accrue apart from regulations under this Schedule,

(b)

at any time on a day in the period the asset or contract was held, or the liability was owed, by the company in exempt circumstances, and

(c)

such other conditions as may be prescribed are fulfilled,

the amount of the gain or loss shall be found in accordance with the alternative method of calculation.

(2)

Regulations may also provide that as regards any such day as is mentioned in sub-paragraph (1) above the accrued amount shall be ascertained in accordance with prescribed rules.

(3)

Regulations may be so framed that the accrued amount as regards a day depends on the extent to which an asset or contract is held, or a liability is owed, in exempt circumstances.

(4)

For the purposes of this paragraph an asset or contract is held, or a liability is owed, in exempt circumstances at a given time if it is then held or owed—

(a)

for the purposes of F1long-term insurance business;

(b)

for the purposes of mutual insurance business;

(c)

for the purposes of the occupation of commercial woodlands;

(d)

by a housing association approved at that time for the purposes of section 488 of the Taxes Act 1988;

(e)

by a self-build society approved at that time for the purposes of section 489 of that Act.

(5)

In this paragraph—

F2“long-term insurance business” means business which consists of the effecting or carrying out of contracts which fall within Part II of Schedule 1 to the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001;

“commercial woodlands” means woodlands in the United Kingdom which are managed on a commercial basis and with a view to the realisation of profits.

Annotations

Textual amendments

F1: Words in Sch. 15 para. 2(4)(a) substituted (1.12.2001) by S.I. 2001/3629, arts. 1(2), 80(2)
F2: Definition in Sch. 15 para. 2(5) substituted (1.12.2001) by S.I. 2001/3629, arts. 1(2), 80(3)

Notes on Schedule 15

Textual amendments

F1: Sch. 15 repealed (24.7.2002 with effect as mentioned in s. 79(3) of the amending Act) by 2002 c. 23, ss. 79(1)(b), 141, Sch. 40 Pt. 3(10) Note 2 (with Sch. 23 paras. 25, 26)