Part 7Derivative contracts
Chapter 1Introduction
Introduction
570Overview of Part
(1)
This Part is about how profits and losses arising to a company from its derivative contracts are brought into account for corporation tax purposes.
(2)
For the meaning of “derivative contract”, see section 576 and the remainder of Chapter 2.
(3)
For how such profits and losses are calculated and brought into account, see—
(a)
section 572 (profits and losses to be calculated using credits and debits given by this Part),
(b)
section 573 (trading credits and debits to be brought into account under Part 3),
(c)
section 574 (non-trading credits and debits to be brought into account under Part 5), and
(d)
Chapter 7 (chargeable gains arising in relation to derivative contracts).
(4)
For the priority of this Part for corporation tax purposes, see Chapter 12.
(5)
This Part also contains the following Chapters (which mainly relate to the amounts to be brought into account in respect of derivative contracts)—
(a)
Chapter 3 (credits and debits to be brought into account: general),
(b)
Chapter 4 (further provision about credits and debits to be brought into account),
(c)
Chapter 5 (continuity of treatment on transfers within groups),
(d)
Chapter 6 (special kinds of company),
(e)
Chapter 8 (further provision about chargeable gains and derivative contracts),
(f)
Chapter 9 (European cross-border transfers of business),
(g)
Chapter 10 (European cross-border mergers),
(h)
Chapter 11 (tax avoidance), and
(i)
Chapter 13 (general and supplementary provisions).
(6)
See also section 980 of ITA 2007 (payments under derivative contracts excepted from duty to deduct income tax).