Part 7Derivative contracts

Chapter 7Chargeable gains arising in relation to derivative contracts

Some credits and debits not to be brought into account under Part 3 or 5

651Credits and debits not to be brought into account under Part 3 or Part 5

1

If the provisions in subsection (2)(a) or (b) apply to a derivative contract for an accounting period, sections 573 (trading credits and debits to be brought into account under Part 3: trading income) and 574 (non-trading credits and debits to be brought into account under Part 5: loan relationships) do not apply to the relevant credits and debits.

2

The provisions are—

a

sections 653 to 655 (issuers of securities with embedded derivatives: deemed options), and

b

section 658 (issuers of securities with embedded derivatives: deemed contracts for differences).

3

For the cases in which sections 653 to 655 and section 658 apply, see sections 652 and 656 respectively.

4

For the provision which applies where sections 653 to 655 or 658 apply, see those sections.