Schedule 23 - Exchange gains and losses from loan relationships etc

Finance Bill – in a Public Bill Committee at 6:45 pm on 11th June 2002.

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Amendments made: No. 157, in page 264, line 34, after 'business' insert

'and falls within subsection (4) below'.

No. 158, in page 265, line 1, after '(3)(a)' insert 'or (c)'.

No. 159, in page 270, line 5, leave out 'or Schedule A business' and insert

', a Schedule A business or an overseas property business (within the meaning of section 70A of the Taxes Act 1988)'.

No. 160, in page 270, line 7, leave out 'or Schedule A business' and insert

', Schedule A business or overseas property business'.

No. 161, in page 271, line 27, leave out from 'any' to end of line 31 and insert 'exchange gains or losses.''.'.

No. 162, in page 272, line 43, after 'would' insert

', or would apart from section 84A(2) to (10) of this Act,'.

No. 163, in page 273, line 41, at end insert—

'Life assurance business

13A (1) Paragraph 1 of Schedule 11 is amended as follows

(2) Before sub-paragraph (2) (effect on debits and credits of applying I minus E basis to profits and gains from loan relationships of insurance companies referable to life assurance business) insert—

''(1B) In applying the I minus E basis for any accounting period in respect of any life assurance business carried on by an insurance company, no exchange gains or losses shall be taken to arise for the purposes of section 100 of this Act except to the extent that the money debt for the purposes of that section—

(a) arises as a result of an amount of income or expenses which falls to be taken into account in applying the I minus E basis not being paid when it is due and payable; or

(b) is one that is treated as a money debt for the purposes of that section by virtue of subsection (11)(a) of that section in accordance with subsection (12) of that section by reference to a Schedule A business or an overseas property business.

This sub-paragraph has effect notwithstanding sub-paragraph (1) above.''.'.

No. 164, in page 273, line 43, leave out sub-paragraph (1).

No. 165, in page 274, line 1, after '3A' insert 'of Schedule 11'.—[Ruth Kelly.]

Schedule 23, as amended, agreed to.

Clause 79 ordered to stand part of the Bill.

Schedule 24 agreed to.

Clauses 80 to 81 ordered to stand part of the Bill.