# The Finance Act 2002, Schedule 26, Parts 2 and 9 (Amendment) Order 2005, Article 4: Amendment of Part 2 of Schedule 26 to the Finance Act 2002


(1) Amend paragraph 4 as follows.
(2) Omit sub-paragraph (1A).
(3) For sub-paragraph (2) substitute—
“(2) For the purposes of this paragraph the excluded types of property are—
(a) in relation to an option or future, intangible fixed assets; and
(b) in relation to relevant contracts which satisfy the conditions specified in sub-paragraph (2A) or (2B)—
(i) shares in a company, or
(ii) rights of a unit holder under a unit trust scheme.
(2A) The conditions specified in this sub-paragraph are—
(a) the relevant contract is entered into by a company carrying on life assurance business;
(b) the relevant contract is an approved derivative for the purposes of Rule 4.3.5 of the Integrated Prudential Sourcebook; and
(c) there is a hedging relationship between the relevant contract and shares or rights of a unit holder under a unit trust scheme held by the company as assets of its long-term insurance fund.
(2B) The conditions specified in this sub-paragraph are—
(a) the relevant contract is entered into or acquired by a company otherwise than for the purposes of a trade carried on by it or the company is a mutual trading company, and
(b) there is a hedging relationship between the contract and an asset of the company which consists of shares or rights of a unit holder under a unit trust scheme.”.
(4) Omit sub-paragraphs (3) and (5).

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Source: https://www.legislation.gov.uk/uksi/2005/646/article/4 (the official version)
Page: https://openlegislation.uk/finance-act-2002-schedule-26-parts-2-and-9-amendment-order-2005/article-4
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.