(a) In this section -
'foreign currency asset', in relation to a company, means an asset of the company -
(i) the consideration for the acquisition of which consisted solely of an amount denominated in a currency other than the functional currency of the company, and
(ii) any gain on the disposal of which would be taken into account in computing income of the company chargeable to tax under Case I of Schedule D;
'functional currency' has the same meaning as in section 402;
'relevant foreign currency liability', in relation to a company, means a liability, not being a relevant monetary item (within the meaning of section 79) which arises from a sum subscribed for paid-up redeemable share capital of the company which is denominated in a currency other than the funftional currency of the company;
'rate of exchange' has the meaning assigned to it by section 79.
(b) For the purposes of this section -
(i) where at any time a company disposes of a foreign currency asset which has been ma
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