Finance Bill 2002
Amendment 159 Page 270 Line 5
Amendment 160 Page 270 Line 7
Mr Andrew Smith (Labour, Oxford East)
159
Schedule 23, 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)?.
160
Schedule 23, page 270, line 7, leave out ?or Schedule A business? and insert ?, Schedule A business or overseas property business?.
EXPLANATORY NOTE
SUMMARY
1. The purpose of these amendments is to make clear that the rules in the new version of section 100 FA 96 apply to provisions for future liabilities included in the accounts of an overseas property business as well as in the accounts of a trade or UK property business.
DETAILS OF THE AMENDMENTS
2. Both amendments insert words into the new section 100 substituted for the old version by paragraph 6 Schedule 23 to the Bill.
3. The first amendment adds a reference to ?overseas property business? to the references to ?trade or Schedule A business? in the new subsection 100(12)(a), which defines what the provisions are, forex gains and losses on which are taken into account as if they are gains and losses on loan relationships.
4. The second amendment adds a reference to ?overseas property business? to the references to ?trade or Schedule A business? in the new subsection 100(12)(b), which requires that an increase in the provisions concerned would be an allowable deduction in computing profits for tax purposes.
BACKGROUND
5. Paragraph 6 restates section 100 FA 1996 so that it now includes certain exchange gains and losses which arise on money debts other than loan relationships and brings them within the revised loan relationship rules.
6. The restated legislation includes 2 subsections designed to include as money debts certain provisions made in a company's accounts where these arise in connection with a trade or a UK property business. The amendments extend those provisions to cover overseas property businesses as well.