Finance (No. 2) Act 2010

Amendments of sections 311, 312 and 599A of CTA 2009

3 (1) Section 599A of that Act (derivative contracts: amounts not fully recognised for accounting purposes) is amended as follows.

(2) In subsection (2)—

(a) in paragraph (b), for “or B” substitute “, B or C”, and

(b) in paragraph (c), for “or securities” substitute “, securities or relevant interest”.

(3) In subsection (3)(a)—

(a) for “has at any time been” substitute “is at any time”, and

(b) for “the period” substitute “any period”.

(4) In subsection (3)(b), for “relevant contribution” substitute “contribution”.

(5) In subsection (4), omit “for the period”.

(6) In subsection (5)(a)—

(a) for “has issued” substitute “at any time issues”, and

(b) for “the period” substitute “any period”.

(7) After subsection (5) insert—

“(5A) Condition C is that, at any time—

(a) the company acquires a relevant interest in another company, a firm or a trust, or

(b) an existing relevant interest of the company in another company, a firm or a trust is varied.

(5B) In this section—

(a) a reference to a relevant interest in a company is to an interest in the company’s shares or other capital,

(b) a reference to a relevant interest in a firm is to an entitlement to share in the profits or capital of the firm, and

(c) a reference to a relevant interest in a trust is to an interest under the trust in any property subject to the trust.”