Corporation Tax Act 2009 (c. 4)

Part 7 U.K. Derivative contracts

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)

C2 Pt. 7 modified (with effect in accordance with s. 148 of the amending Act) by Finance Act 2012 (c. 14), s. 88(1)(2)(7) (with s. 147, Sch. 17)

Chapter 6 U.K. Special kinds of company

Insurance companies U.K.

635 Creditor relationships: embedded derivatives which are options U.K.

(1) This section applies if in any accounting period—

(a) a company is a party to a creditor relationship for the purposes of its [F1 basic life assurance and general annuity business], and

(b) that creditor relationship is one in relation to which sections 415 and 585 (which both apply to loan relationships with embedded derivatives) would have effect but for the fact that the company accounts for the creditor relationship at fair value through profit and loss.

(2) [F2 For the purpose of applying the I - E rules, this Part] and Part 5 (loan relationships) have effect for that accounting period as they would if the creditor relationship were one in relation to which those sections have effect.

Textual Amendments

F1 Words in s. 635(1)(a) substituted (17.7.2012) by Finance Act 2012 (c. 14), Sch. 16 para. 169(2)

F2 Words in s. 635(2) substituted (17.7.2012) by Finance Act 2012 (c. 14), Sch. 16 para. 169(3)