Part 7Derivative contracts
Chapter 7Chargeable gains arising in relation to derivative contracts
Derivative contracts to which sections 640 and 641 apply
650Property based total return swaps
(1)
This section applies to a derivative contract of a company for an accounting period if each of conditions A to F is met.
(2)
Condition A is that the derivative contract is a contract for differences.
(3)
Condition B is that one or more indices are specified in the contract.
(4)
Condition C is that at least one index so specified (“the capital value index”) is an index of changes in the value of land.
(5)
Condition D is that the underlying subject matter of the derivative contract also includes interest rates.
(6)
Condition E 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.
(7)
Condition F is that the company is not an excluded body.