Article 5 Purposes for which accounting methods are approved

(1)

This article has effect for the purpose of determining which of the accounting methods approved under article 3 is to be used as respects the creditor relationships of an investment trust.

(2)

The same method shall be used as respects all creditor relationships of an investment trust for any single accounting period.

(3)

The modified main method shall be used for any accounting period where—

(a)

the investment trust uses the main method or the modified main method for the purposes of its statutory accounts for that accounting period;

(b)

the investment trust has in an earlier accounting period (not being an accounting period described in paragraph (4)) used the modified main method as an authorised accounting method for the purposes of Chapter II; or

(c)

the investment trust has, at any time during the accounting period referred to in the words preceding sub-paragraph (a), held—

(i)

a relevant discounted security within the meaning of Schedule 13; or

(ii)

a security to which section 717 of the Taxes Act^f1 applies.

(4)

The accounting period described in this paragraph is one—

(a)

which ended before the coming into force of this Order; and

(b)

during which the investment trust did not at any time hold any of the securities referred to in paragraph (3)(c)(i) or (ii).

Annotations

Footnotes

f1: 1988 c. 1; section 717 was amended by paragraph 35 of Schedule 20 to the Finance Act 1996 (c. 8).