The Loan Relationships and Derivative Contracts (Disregard and Bringing into Account of Profits and Losses) Regulations 2004

Application of regulations 7, 8 and 9 in relation to derivative contracts where fair value accounting applies U.K.

[F1 6.— (1) Regulation 7, 8 or 9 apply in relation to a derivative contract (which satisfies the conditions in regulation 7(1)(a), 8(1)(a) or 9(1), as the case may be) if—

(a) an election under regulation 6A has effect in relation to the contract,

(b) the contract or part of the contract is a designated fair value hedge,

(c) the hedged item is a loan relationship in relation to which the company uses fair value accounting, or

(d) the contract forms part of an arrangement the main purpose, or one of the main purposes, of which is to obtain a tax advantage in relation to that contract that would not arise if regulation 7, 8 or 9 applies.

(2) In paragraph (1)(d)—

“arrangement” includes any agreement, understanding, scheme, transaction or series of transactions (whether or not legally enforceable);

“tax advantage” has the meaning given in section 1139 of CTA 2010.]

Textual Amendments

F1 Regs. 6-6B substituted for reg. 6 (31.12.2014 with effect in accordance with reg. 1(2)(a)(3) of the amending S.I.) by The Loan Relationships and Derivative Contracts (Disregard and Bringing into Account of Profits and Losses) (Amendment) Regulations 2014 (S.I. 2014/3188), regs. 1(1), 6 (with reg. 9)