Re Terms&Conditions of Notes

RNS Number:5080Q
Chester Asset Recs Deals 2001-B PLC
25 January 2002

Dated 24 January 2002


Chester Assets Receivables Dealings 2001-B PLC

Information Regarding Redenomination Language in Terms and Conditions of Notes

It cannot be said with certainty when, if ever, the United Kingdom may announce 
its intention to become a Participating Member State of the European Union which 
adopts the euro as its lawful currency. However, the Terms and Conditions of the 
Notes issued by the Company contain provisions that provide for redenomination 
in such event. Consequently, the Company wishes to remind certain categories of 
UK Noteholders (as further described below) of certain considerations in respect 
of their Notes and the use of redenomination language.

The Offering Circular, "Taxation Treatment of the Notes", part (E) deals with 
any possible application of United Kingdom capital gains tax to a Noteholder in 
connection with a disposal (which includes a redemption) of any Notes. This 
concerns any Noteholder who: (a) is not within the charge to United Kingdom 
corporation tax in respect of the relevant disposal); and (b) either: (i) is 
resident or ordinarily resident in the United Kingdom or (ii) carries on a trade 
in the United Kingdom through a branch or agency to which the relevant Notes are 
attributable (as capital assets).
 
It is emphasised to all such Noteholders that the capital gains treatment that 
will apply to such Noteholders on a disposal (including a redemption) of Notes 
will depend very much on the views of the Inland Revenue, at the time of such 
disposal, as to whether the Notes constitute "qualifying corporate bonds". Any 
such Noteholder who (or which) wishes to be certain as to his (or its) capital 
gains tax position as regards the disposal is advised to seek tax advice, before 
the disposal, on the Inland Revenue's then current view as to whether the Notes 
constitute qualifying corporate bonds.

If, at the relevant time, the Inland Revenue take the view that the Notes are 
not qualifying corporate bonds, such a Noteholder may be treated as realising a 
chargeable gain or allowable loss, for capital gains tax purposes, on a disposal 
(including a redemption) of Notes. There are provisions to prevent any 
particular gain (or loss) from being charged or (relieved) at the same time 
under these provisions and also under the provisions of the "accrued income 
scheme" described in part (F) of the section entitled "Taxation Treatment of the 
Notes" in the Prospectus of the Company dated 12 December 2001.
 



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