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).