SCHEDULES

C1C9C3C2C5C4C6C7C8SCHEDULE 26Derivative contracts

Annotations:
Modifications etc. (not altering text)
C1

Sch. 26 modified by 1996 c. 8, s. 86(3C) (as inserted (24.7.2002 with effect as mentioned in s. 82(2) of the amending Act) by 2002 c. 23, s. 82, Sch. 25 Pt. 1 para. 6(3))

C9

Sch. 26 extended (retrospective to 30.9.2002) by Finance Act 2003 (c. 14), s. 177(4)(8)(11)

C3

Sch. 26 applied by 1988 c. 1, s. 440(2B) (as amended (with effect in accordance with s. 52(3) of the amending Act) by Finance Act 2004 (c. 12), Sch. 10 para. 70)

C2

Sch. 26 modified by 1996 c. 8, s. 94A (as inserted (with effect in accordance with s. 52(3) of the amending Act) by Finance Act 2004 (c. 12), Sch. 10 para. 13)

C5

Sch. 26 applied (with modifications) (5.10.2004) by Energy Act 2004 (c. 20), s. 198(2), Sch. 9 para. 24 (with s. 38(2)); S.I. 2004/2575, art. 2(1), Sch. 1

C4

Sch. 26 applied (with modifications) (5.10.2004) by Energy Act 2004 (c. 20), s. 198(2), Sch. 9 para. 12 (with s. 38(2)); S.I. 2004/2575, art. 2(1), Sch. 1

C8

Sch. 26 modified (19.7.2006) by Finance Act 2006 (c. 25), s. 136(2)(e)

Part 2Derivative contracts

2Derivative contracts and relevant contracts

F11

For the purposes of the Corporation Tax Acts, a company’s derivative contracts are those of its relevant contracts—

a

which satisfy any of the conditions in paragraphs (a) to (c) of paragraph 3(1), and

b

which are not prevented from being derivative contracts by paragraph 4 or any other provision of the Corporation Tax Acts.

2

For the purposes of this Schedule a “relevant contract” is—

a

an option,

b

a future, or

c

a contract for differences.

F22A

For provisions which treat a company as being party to a relevant contract see—

a

section 94A of the Finance Act 1996 (loan contracts with embedded derivatives);

b

paragraph 2A below (non-financial contracts with embedded derivatives);

c

paragraph 2B below (hybrid derivatives).

2B

In this Schedule “plain vanilla contract” means a relevant contract other than one to which a company is treated as being party by virtue of a provision mentioned in sub-paragraph (2A).