1

This paragraph applies where—

a

a company is party to a relevant contract which is a derivative contract whose underlying subject matter consists, or is treated as consisting, wholly of shares or rights of a unit holder under a unit trust scheme,

b

the company entered into or acquired the relevant contract for the purposes of a trade carried on by it,

c

at any time (“the relevant time”) the relevant contract ceases to be held for those purposes,

d

the company continues to be party to the relevant contract after the relevant time, and

e

if the company had entered into or acquired the contract immediately after the relevant time, the relevant contract would not have been a derivative contract.

3

Paragraph 9 applies for the purpose of determining whether the underlying subject matter of a relevant contract is to be treated as consisting wholly of the property referred to in sub-paragraph (1)(a).