Amendment to the Loan Relationships and Derivative Contracts (Disregard and Bringing into Account of Profits and Losses) Regulations 20046

1

Amend regulation 5(1) (regulations 3 and 4: supplementary) as follows.

2

In sub-paragraph (b)—

a

in paragraph (i) after “liability” insert “mentioned in regulation 3(1)”;

b

in paragraph (ii) after “contract” insert “mentioned in regulation 4(1)”; and

c

omit the words from “the extent” to the end.

3

At the end of the paragraph add—

  • the extent to which an asset is matched is determined in accordance with the following rules

4

For Rule 1 substitute—

Rule 1

Liabilities and contracts are regarded as matched to the greatest possible extent with assets which are ships or aircraft.

5

In Rule 2 at the end insert “if the disposal were made on a date falling more than 12 months after the date of acquisition of the asset”.

6

In Rule 3—

a

after “liabilities” insert “and contracts”;

b

delete “if the disposal were made on a date falling more than 12 months after the date of acquisition of the asset”.