SCHEDULES

SCHEDULE 20Taxation of hybrid capital instruments

PART 2Corporation tax, income tax and capital gains tax

9Consequential amendments

1

The Loan Relationships and Derivative Contracts (Disregard and Bringing into Account of Profits and Losses) Regulations 2004 (S.I. 2004/3256) are amended in accordance with this paragraph.

2

In regulation 2(1) (interpretation)—

a

after the definition of “fair value profit or loss” insert—

  • “hybrid capital instrument” has the meaning given by section 475C of CTA 2009;

b

omit the definition of “regulatory capital security”.

3

In regulation 3 (exchange gains or losses arising from liabilities or assets hedging shares etc), in paragraph (5)(c), for “a regulatory capital security” substitute “a hybrid capital instrument”.

4

In regulation 4 (exchange gains or losses arising from derivative contracts hedging shares etc), in paragraph (4A)(c), for “a regulatory capital security” substitute “a hybrid capital instrument”.