Finance Act 2002

Basis of accounting for contracts falling within paragraph 6, 7 or 8U.K.

21(1)This paragraph applies in relation to a contract which is a derivative contract for the purposes of this Schedule by virtue of—

(a)paragraph (contracts producing a guaranteed return),

(b)paragraph (contracts where guaranteed amount payable on maturity), or

(c)paragraph (contracts to provide insurance benefits).

(2)Where this paragraph applies in relation to a derivative contract, the accounting method to be used as respects the derivative contract for an accounting period shall be an authorised mark to market basis of accounting.