Article 13 Amendment of paragraph 45D of Schedule 26

Amend paragraph 45D^f1 (creditor relationships: embedded derivatives which are options) as follows.

In sub-paragraph (1) for paragraphs (a) to (c) substitute—

“(a)

the derivative contract is a loan-contract embedded derivative to which the company is treated as party by virtue of a creditor relationship of the company (“the original relationship”),

(b)

the derivative contract is treated as an option by virtue of section 94A(3) of the Finance Act 1996,”.

In sub-paragraph (2)(a) for “creditor relationship” substitute “original relationship”.

For sub-paragraph (2)(f) substitute—

“(f)

the original asset is not an existing asset.”.

In sub-paragraph (3)(a) for “creditor relationship” substitute “original relationship”.

In sub-paragraph (3A) for “paragraph” substitute “Schedule and Chapter 2 of Part 4 of the Finance Act 1996”.

In sub-paragraph (8) for “creditor relationship” substitute “original relationship”.