Part 7Derivative contracts

Chapter 2Contracts to which this Part applies

Meaning of “derivative contract” and other basic definitions

576“Derivative contract”

(1)

For the purposes of this Part, a contract of a company is a derivative contract of the company for an accounting period if it—

(a)

is a relevant contract (see sections 577 and 578),

(b)

meets any of the accounting conditions for the accounting period (see section 579), and

(c)

is not prevented from being a derivative contract by section 589 (contracts excluded because of underlying subject matter: general) or any other provision of the Corporation Tax Acts.

(2)

See also sections 587 and 588 (other contracts etc treated as derivative contracts).

(3)

But note section 701 which includes power to amend the provisions of this Chapter relating to the meaning of “derivative contract”.