93(1)This paragraph applies if—U.K.
(a)a company is a party to a plain vanilla contract which (not having been a derivative contract) became a derivative contract before 30 December 2006,
(b)the company disposes of the derivative contract by ceasing to be a party to it, and
(c)paragraphs 91 and 92 do not apply in relation to the contract.
(2)Section 699(1) (priority of this Part for corporation tax purposes) does not apply for the purpose of calculating any chargeable gain accruing to the company on the disposal.
(3)For the purpose of calculating any chargeable gain accruing to the company on the disposal, the sums allowable as a deduction under section 38(1)(a) of TCGA 1992 (acquisition costs) are—
(a)if G exceeds L, increased by the amount of that excess,
(b)if L exceeds G, reduced by the amount of that excess.
(4)If the amount of the excess in sub-paragraph (3)(b) is greater than the amount of the expenditure allowable under section 38(1)(a) of TCGA 1992, the amount of the excess which cannot be deducted from the expenditure so allowable is, for the purpose mentioned in sub-paragraph (3), added to the consideration for the disposal.
(5)In this paragraph—
G is the sum of the credits brought into account under section 574 of this Act (non-trading credits and debits to be brought into account under Part 5) in respect of the derivative contract in each relevant accounting period, and
L is the sum of the debits brought into account under that section in respect of the derivative contract in each such period.
(6)In sub-paragraph (5) “relevant accounting period” means—
(a)the accounting period in which the disposal is made, or
(b)any previous accounting period.