Corporation Tax Act 2009 (c. 4)

Part 7 U.K. Derivative contracts

Chapter 7 U.K. Chargeable gains arising in relation to derivative contracts

Derivative contracts to which sections 640 and 641 apply U.K.

643 Contracts relating to land or certain tangible movable property U.K.

(1) This section applies to a derivative contract of a company for an accounting period if conditions A, B and C are met.

(2) Condition A is that the underlying subject matter of the derivative contract consists of either or both of the following—

(a) land,

(b) tangible movable property, other than commodities which are tangible assets.

(3) Condition B is that the company is not a party to the derivative contract at any time in the accounting period for the purposes of a trade carried on by it.

(4) Condition C is that the company is not an excluded body.

(5) For the case where the underlying subject matter of a derivative contract also includes income from property within subsection (2)(a) or (b), see section 644.