Part 7Derivative contracts
Chapter 1Introduction
Introduction
570Overview of Part
1
This Part is about how profits and losses arising to a company from its derivative contracts are brought into account for corporation tax purposes.
2
For the meaning of “derivative contract”, see section 576 and the remainder of Chapter 2.
3
For how such profits and losses are calculated and brought into account, see—
a
section 572 (profits and losses to be calculated using credits and debits given by this Part),
b
section 573 (trading credits and debits to be brought into account under Part 3),
c
section 574 (non-trading credits and debits to be brought into account under Part 5), and
d
Chapter 7 (chargeable gains arising in relation to derivative contracts).
4
For the priority of this Part for corporation tax purposes, see Chapter 12.
5
This Part also contains the following Chapters (which mainly relate to the amounts to be brought into account in respect of derivative contracts)—
a
Chapter 3 (credits and debits to be brought into account: general),
b
Chapter 4 (further provision about credits and debits to be brought into account),
c
Chapter 5 (continuity of treatment on transfers within groups),
d
Chapter 6 (special kinds of company),
e
Chapter 8 (further provision about chargeable gains and derivative contracts),
f
Chapter 9 (European cross-border transfers of business),
g
Chapter 10 (European cross-border mergers),
h
Chapter 11 (tax avoidance), and
i
Chapter 13 (general and supplementary provisions).
6
See also section 980 of ITA 2007 (payments under derivative contracts excepted from duty to deduct income tax).