C1Part 7Derivative contracts

Annotations:
Modifications etc. (not altering text)
C1

Pt. 7 modified (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), ss. 601, 1184(1) (with Sch. 2)

Chapter 2Contracts to which this Part applies

Other contracts etc treated as derivative contracts

588Associated transaction treated as derivative contract

1

This section is to be read as if it were in Chapter 7 (shares with guaranteed returns etc) of Part 6 (relationships treated as loan relationships etc).

2

See, in particular—

  • section 526(2) (meaning of “non-qualifying share”), and

  • section 532 (meaning of “associated transaction” and “the associated transactions condition”).

3

Subsection (4) applies in a case which falls within section 523(1)(b)(ii) (loan relationships: non-qualifying shares) because the share mentioned in section 523(1)(a) is a non-qualifying share as a result of the associated transactions condition being met.

4

An associated transaction is treated for the purposes of this Part as a derivative contract or a transaction in respect of a derivative contract if it is not in fact such a contract or transaction.

5

For the way in which credits and debits are to be brought into account where subsection (4) applies, see section 603 (application of fair value accounting).