610Non-UK resident company ceasing to hold derivative contract for [F1section 609(2) purposes]U.K.
(1)This section applies if the rights and liabilities under a derivative contract of a company which is not UK resident cease to any extent to be held or owed for [F2section 609(2) purposes] in circumstances not involving a related transaction.
(2)This Part applies as if—
(a)immediately before the rights and liabilities so cease the company had assigned them, so far as so ceasing, for consideration of an amount equal to their fair value at that time, and
(b)the company had immediately reacquired them for consideration of the same amount.
(3)This section does not apply if—
(a)the conditions in section 630(1)(a) and (b) are met in relation to the company (transferee leaving group after replacing transferor as party to derivative contract), and
(b)the rights and liabilities mentioned in subsection (1) cease to be held or owed for [F3section 609(2) purposes] at the same time as the company ceases to be a member of the relevant group.
(4)In subsection (3) “the relevant group” has the meaning given by section 630(4).
[F4(5)A right or liability ceases to be held or owed for section 609(2) purposes if and in so far as—
(a)it ceases to be held or owed for any purposes mentioned in section 609(2), and
(b)on doing so, it does not begin or continue to be held or owed for any of the other purposes so mentioned.]
Textual Amendments
F1Words in s. 610 heading substituted (6.4.2020) by Finance Act 2019 (c. 1), Sch. 5 paras. 20(2), 35 (with Sch. 5 para. 36)
F2Words in s. 610(1) substituted (6.4.2020) by Finance Act 2019 (c. 1), Sch. 5 paras. 20(3), 35 (with Sch. 5 para. 36)
F3Words in s. 610(3)(b) substituted (6.4.2020) by Finance Act 2019 (c. 1), Sch. 5 paras. 20(4), 35 (with Sch. 5 para. 36)
F4S. 610(5) inserted (6.4.2020) by Finance Act 2019 (c. 1), Sch. 5 paras. 20(5), 35 (with Sch. 5 para. 36)