{
  "url": "https://openlegislation.uk/finance-act-2002-schedule-26-parts-2-and-9-amendment-order-2006/article-27",
  "json_url": "https://openlegislation.uk/finance-act-2002-schedule-26-parts-2-and-9-amendment-order-2006/article-27.json",
  "legislation": "uksi/2006/3269",
  "legislation_title": "The Finance Act 2002, Schedule 26, (Parts 2 and 9) (Amendment) Order 2006",
  "legislation_url": "https://openlegislation.uk/finance-act-2002-schedule-26-parts-2-and-9-amendment-order-2006",
  "path": "article/27",
  "kind": "article",
  "number": "27",
  "heading": "Amendment of paragraph 45M of Schedule 26",
  "text": "(1) Amend paragraph 45M (treatment of host contract as a loan relationship) as follows.\n(2) For sub-paragraphs (1) and (2) substitute—\n“(1) This paragraph applies where for an accounting period—\n(a) a company is party to a hybrid derivative contract falling within paragraph 3(1)(b),\n(b) the nested derivative is a derivative contract falling within paragraph 3(1)(a),\n(c) the underlying subject matter of the derivative 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, and\n(d) the quasi-derivative host contract is treated for accounting purposes as, or as forming part of, a financial asset.\n(2) Where this paragraph applies—\n(a) the quasi-derivative host contract shall be treated for the purposes of the Corporation Tax Acts as if it were a creditor relationship of the company, and\n(b) the nested derivative shall be treated—\n(i) as satisfying the conditions in paragraph 4(2A), and\n(ii) as a chargeable asset (within the meaning of paragraph 4A(4)).”.\n(3) Omit sub-paragraphs (5) and (6).",
  "extent": null,
  "status": null,
  "version": "current",
  "annotations": [
    {
      "type": "footnote",
      "label": "f1",
      "text": "Paragraph 45M was inserted by article 18 of S.I. 2005/646 and amended by article 22 of S.I. 2005/2082 and article 14 of S.I. 2005/3440."
    }
  ],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/uksi/2006/3269/article/27",
    "retrieved_at": "2026-10-29T04:13:45.218084+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."
}