Section 399 | Basic rules

(1)This section applies if a loan relationship is represented by an index-linked gilt-edged security.

(2)The amounts to be brought into account for the purposes of this Part are to be determined using fair value accounting.

(3)For provision requiring adjustments to be made to amounts determined under subsection (2), see sections 400 to 400C (adjustments for changes in index).

(4)In this section and sections 400 to 400C—

“index-linked gilt-edged securities” means any gilt-edged securities under which the amounts of the payments are determined wholly or partly by reference to an index of prices published by the Statistics Board;

“relevant prices index”, in relation to an index-linked gilt-edged security, means the index of prices by reference to which the amounts of the payments under the security are wholly or partly determined.

(5)For the meaning of “gilt-edged securities”, see section 476(1).

(6)In the case of insurance companies, the application of sections 400 to 400C is subject to section 112 of FA 2012.