Section 602: Contract becoming one relating to holding in OEIC, unit trust or offshore fund
1624.This section determines the opening valuation of a derivative contract for the purposes of section 601. It is based on paragraph 37(1), (2), (3), and (4) of Schedule 26 to FA 2002.
1625.The accounting period to which this section applies is that in which a relevant contract is treated as a derivative contract because of section 587 if that period immediately follows another in which it was not so treated. The section applies only if the relevant contract was a “chargeable asset” (defined in section 703) at the end of the earlier period.
1626.For the meaning of “market value” for the purposes of corporation tax on chargeable gains, see in particular section 272 of TCGA.