638Venture capital trusts: profits or losses of a capital nature
(1)Profits or losses of a capital nature arising to a venture capital trust from a derivative contract may not be brought into account as credits or debits in accordance with this Part.
(2)For the purposes of this section, “profits or losses of a capital nature” means profits or losses which—
(a)are accounted for through the capital column of the income statement in accordance with the Statement of Recommended Practice, or
(b)would have been so accounted for if the venture capital trust had been an investment trust and that Statement had been applied correctly.
(3)In this section “the Statement of Recommended Practice” has the meaning given by section 637(3) (investment trusts: profits or losses of a capital nature).
(4)The Treasury may by order amend the definition of “profits or losses of a capital nature” in subsection (2), so far as it applies in relation to a venture capital trust which prepares accounts in accordance with international accounting standards.