Corporation Tax Act 2009 (c. 4)

Part 7 U.K. Derivative contracts

Chapter 6 U.K. Special kinds of company

Insurance companies U.K.

635 Creditor relationships: embedded derivatives which are options U.K.

(1) This section applies if in any accounting period—

(a) a company is a party to a creditor relationship for the purposes of its life assurance business, and

(b) that creditor relationship is one in relation to which sections 415 and 585 (which both apply to loan relationships with embedded derivatives) would have effect but for the fact that the company accounts for the creditor relationship at fair value through profit and loss.

(2) This Part and Part 5 (loan relationships) have effect for that accounting period as they would if the creditor relationship were one in relation to which those sections have effect.