{
  "url": "https://openlegislation.uk/finance-act-2002-schedule-26-parts-2-and-9-amendment-order-2005/article-18",
  "json_url": "https://openlegislation.uk/finance-act-2002-schedule-26-parts-2-and-9-amendment-order-2005/article-18.json",
  "legislation": "uksi/2005/646",
  "legislation_title": "The Finance Act 2002, Schedule 26, Parts 2 and 9 (Amendment) Order 2005",
  "legislation_url": "https://openlegislation.uk/finance-act-2002-schedule-26-parts-2-and-9-amendment-order-2005",
  "path": "article/18",
  "kind": "article",
  "number": "18",
  "heading": "Amendment of Part 9 of Schedule 26 to the Finance Act 2002",
  "text": "After paragraph 45L insert—\n“Treatment of host contract as a loan relationship\n45M. (1) This paragraph applies where—\n(a) a company is treated under paragraph 2(4) as party to a derivative contract,\n(b) that contract is (within the meaning of paragraph 3(3)) treated for accounting purposes as a derivative financial instrument, and\n(c) the underlying subject matter of that contract consists, or is treated as consisting, wholly of—\n(i) shares in a company, or\n(ii) rights of a unit holder under a unit trust scheme.\n(2) Where this paragraph applies—\n(a) the host contract shall be treated for the purposes of the Corporation Tax Acts as if it were a creditor relationship of the company which is a zero coupon bond, and\n(b) the derivative contract shall be treated as satisfying the conditions in paragraph 4(2A).\n(3) For the purposes of this paragraph a “zero coupon bond” is a security—\n(a) whose issue price is less than the amount payable on redemption, and\n(b) which does not provide for any amount to be payable by way of interest.\n(4) Paragraph 9 applies for the purpose of determining whether the underlying subject matter is to be treated as consisting wholly of property referred to in sub-paragraph (1)(c).”.",
  "extent": null,
  "status": null,
  "version": "current",
  "annotations": [],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/uksi/2005/646/article/18",
    "retrieved_at": "2026-10-29T05:04:32.252720+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}