Finance Bill 2002
Amendment 125
Page: 344 Line: 40
Mr Andrew Smith (Labour, Oxford East)
125
Schedule 26, page 344, line 40, at end insert-
'(3) No debit may be brought into account by virtue of this paragraph if it is taken into account in arriving at the amount of expenditure in relation to which a debit may be given by Schedule 29 to the Finance Act 2002.'.
EXPLANATORY NOTE
SUMMARY
1. The purpose of the amendment is to ensure that an amount cannot be taken into account both for the derivative contracts rules and in the intangible assets rules.
DETAILS OF THE AMENDMENT
2. The amendment inserts a new sub-paragraph (3) into paragraph 25 Schedule 26 to the Bill. This is the derivative contract equivalent of the new sub-paragraph (3) of paragraph 14 of Schedule 9 FA 1996 inserted by paragraph 31(3) of Schedule 25 to the Bill (loan relationships). That provision ensures that an amount cannot be taken into account both under the loan relationship rules and again under those for intangible fixed assets in Schedule 29 to the Bill. This amendment does the same for derivative contracts.
BACKGROUND
3. The measures included in the Finance Bill as Schedule 26 represent the outcome of a major consultative process between the Government and representatives of, and advisers to, business. Two Consultative documents and a Technical Note have been produced, and two rounds of draft clauses have been published, most recently on 19 December 2001.